Siegfried : Financial Report (Siegfried 2025 AR Financial Report EN)

About this update from Siegfried Holding Ag

Financial Report 2025 Financial Report Consolidated financial statements of Siegfried Holding AG 03 Key figures overview 03 Financial commentary 2025 04 Consolidated balance sheet 06 Consolidated income statement 07 Consolidated statement of cash flows 08 Consolidated statement of changes in equity 09 Notes to the consolidated financial statements 10 Report of the statutory auditor 36 Financial statements of Siegfried Holding AG 39 Balance sheet of Siegfried Holding AG 40 Income statement of Siegfried Holding AG 41 Notes to the financial statements of Siegfried Holding AG 41 Proposal of the Board of Directors regarding the repayment of par value from share capital 47 Report of the statutory auditor 48 Information for investors 50 Key figures overview 2021 - 2025, consolidated figures 50 Core results 51 Stock market data 53 Share price development 53 About this annual report 54 This is an excerpt of Siegfried's Annual Report 2025. All chapters can be found on our investor relations portal: https://www.siegfried.ch/investors/reports 1 327.8 354.0 26.7% 312.3 23.5% 217.5 16.4% 162.1 12.2% 3.71 3.69 228.2 - 3.1 231.5 ‌Key figures overview 2025 2024 Change CHF (LC) Net sales (million CHF) 1 294.6 +2.6% (+4.3%) Core gross profit (million CHF) 329.1 7.6% Core gross profit margin (%) 25.4% Core results 1 Core EBITDA (million CHF) 2 285.6 9.3% Core EBITDA margin (%) 2 22.1% Core EBIT (operating result) (million CHF) 200.9 8.3% Core EBIT margin (%) 15.5% Core net profit (million CHF) 158.9 2.0% Core net profit-margin (%) 12.3% Non-diluted core earnings per share (CHF) 3 3.69 0.6% Diluted core earnings per share (CHF) 3 3.66 0.9% Cash flow from operating activities (million CHF) 168.8 35.2% Free cash flow (million CHF) 4 - 11.6 - 72.9% Investment in property, plant and equipment 180.8 28.0% and intangible assets (million CHF) December 31, 2025 December 31, 2024 Change Equity (million CHF) 979.9 15.1% Total assets (million CHF) 1 933.7 11.4% Equity ratio (%) 50.7% Employees (number of FTEs) 3 886 0.1% 1 127.6 2 153.5 52.4% 3 891 1 For more information and reconciliation of Swiss GAAP FER to core results see Financial Report «Investor information», pages 51-52. 2 Including a one-off effect in other income of CHF 7.5 million. 3 At the Annual General Meeting 2025 a share split at a ratio of 1:10 was approved. The prior year was adjusted accordingly for better comparability. 4 Calculation free cash flow: operating cashflow +/− investment in PPE +/− investment in intangible assets. ‌Financial commentary 2025 Strong results in 2025: Strategic expansion lays the foundation for future profitable growth For 2025, Siegfried reported a strong financial performance, delivering across all key financial metrics. Continued profitable growth was driven by disciplined execution and operational efficiency, despite ongoing macroeconomic volatility and currency headwinds. Net sales increased to CHF 1 327.8 million, representing a year-on-year growth of 2.6% in CHF. At constant exchange rates, growth amounted to 4.3%. The EUR, which accounts for approximately 50% of net sales, depreciated by 1.6% against the Swiss franc, while the USD, representing 13% of net sales, declined by 5.5%. The distribution of net sales throughout the year reflected a more pronounced seasonality with 46.7% of net sales generated in the first half and 53.3% in the second half of the year. There was once again a stronger contribution towards the end of the year, which was made possible through the strong execution capabilities of the organization. As a result of ongoing portfolio optimization and strong impact of operational excellence, profitability further improved. Core gross profit increased to CHF 354.0 million, resulting in a core gross profit margin of 26.7%, exceeding the previous year's level of CHF 329.1 million and a margin of 25.4%. Core EBITDA reached CHF 312.3 million, an increase of 9.3%, while core EBIT rose to CHF 217.5 million (+8.3%). Core net profit increased to CHF 162.1 million, reflecting Siegfried's strong earnings quality and operating leverage. Corresponding margins reached new record levels, with a core EBITDA margin of 23.5%, core EBIT margin of 16.4%, and core net profit margin of 12.2%. By excluding extraordinary expenses and income, the core results provide a clear and comparable view of Siegfried's operational performance. In 2025, adjustments to Swiss GAAP FER results remained limited and in total reduced the core numbers. Adjustments primarily related to changes in pension obligations from foreign pension plans, including changes in the technical interest rate, which reduced core results by CHF 9.9 million. Interest expenses related to these obligations amounted to CHF 2.9 million and were again reported as financial expenses. Also, in 2025, we incurred CHF 0.8 million of cost for the assessment of acquisition opportunities that did not result in an acquisition, underscoring the Group's prudent and disciplined approach to acquisitions. Strengthened cost management and operational efficiency Operational excellence, efficiency improvements, and strict cost discipline continued to be central priorities in 2025. While Siegfried selectively invested in strategic capabilities and growth initiatives, these additional costs were more than offset by productivity gains and process improvements across the Group. Total core operating expenses excluding operating income amounted to CHF 151.2 million, representing 11.4% of net sales, through an expansion of the perimeter (the Siegfried Acceleration Hub) and selected investments into strategic capabilities. Core marketing and sales expenses amounted to CHF 18.6 million. Core research and development expenses, a key driver of customer engagement and future growth, totaled CHF 46.2 million. Core administrative and general expenses amounted to CHF 86.4 million, reflecting continued investments in digitalization, IT, and organizational capabilities. Other income increased to CHF 14.7 million, also due to a one-off insurance payment of CHF 7.5 million related to fraudulent payments identified in 2021. Optimized financial management Core financial expenses amounted to CHF 11.6 million, remaining well under control despite higher average debt levels following higher amounts of strategic investments. Foreign exchange differences were minus CHF 6.4 million, reflecting the significant volatility in foreign exchange rates. Operating cash flow, free cash flow, and financing activities Operating cash flow amounted to CHF 228.2 million. Our continued focus on net working capital efficiency was partially offset by timing effects in revenue recognition late in the year. Siegfried continued to invest decisively in its future. Investments in property, plant and equipment amounted to CHF 211.9 million, representing 16.0% of net sales. Free cash flow amounted to negative CHF 3.1 million (CHF -11.6 in 2024). In September 2025, Siegfried successfully placed a CHF 300 million senior bond for general corporate purposes, including the refinancing of the existing CHF 200 million senior bond. Also, in 2025, we have successfully established a non-recourse factoring facility for an amount of up to CHF 50 million, allowing us to even better manage our net working capital consumption. Other key financial figures At year-end, Siegfried held CHF 103.1 million in cash and cash equivalents. Financial liabilities totaled CHF 575.2 million, resulting in net debt of CHF 472.1 million. The net debt-to-core EBITDA ratio stood at 1.5, underlining the Group's solid balance sheet and financial flexibility, which will remain even after the financing of the acquisition completed later in the year 2026. Strategic acquisition strengthens long-term growth platforms In January 2026, Siegfried announced the acquisition of high-quality small molecules drug substance manufacturing capacity in the United States and Australia, representing a major strategic milestone for the Group. This acquisition significantly strengthens Siegfried's US footprint, expands its technological capabilities, and enhances access to attractive customer segments in the world's largest pharmaceutical market. The transaction represents a strong strategic fit and will form a key pillar for sustained profitable growth and value creation in the years ahead. Proposal to the Annual General Meeting At the Annual General Meeting on April 16, 2026, the Board of Directors will propose par value repayment of CHF 0.40 per share, a payout increase of CHF 0.02 per share, reflecting Siegfried's strong financial performance and commitment to shareholder returns. Dr. Reto Suter Chief Financial Officer ‌Consolidated balance sheet In 1000 CHF (as of December 31) Notes* 2025 2024 Assets Non-current assets Property, plant and equipment 2 1 016 079 909 988 Intangible assets 3 65 331 55 892 Financial and other non-current assets 566 583 Employer contribution reserves 17 10 605 9 966 Deferred tax assets 4 12 221 17 918 Total non-current assets 1 104 802 994 346 Current assets Accrued income and prepaid expenses 5 48 270 34 497 Inventories 6 407 551 387 580 Current income taxes 10 259 18 221 Other current assets 7 87 169 64 457 Trade receivables 8 391 690 395 008 Derivative financial instruments 9 6 - Securities 713 856 Cash and cash equivalents 103 082 38 756 Total current assets 1 048 740 939 375 Total assets 2 153 543 1 933 722 Liabilities and equity Equity Share capital 10 32 566 49 643 Treasury shares 11 - 75 411 - 77 542 Capital reserves 180 579 171 174 Retained earnings 990 390 836 917 Total equity 1 128 124 980 192 Minority interests - 569 - 284 Total equity incl. minority interests 1 127 555 979 908 Non-current liabilities Non-current financial liabilities 12 375 200 490 100 Non-current provisions 13 12 701 20 380 Deferred tax liabilities 4 20 881 18 435 Other non-current liabilities 14 19 323 32 736 Non-current pension liabilities 17 73 158 85 565 Total non-current liabilities 501 263 647 216 Current liabilities Current provisions 13 4 680 6 120 Current pension liabilities 17 188 453 Accrued expenses and deferred income 15 63 547 61 552 Current income tax liabilities 34 180 30 732 Other current liabilities 16 111 351 111 424 Trade payables 110 352 95 505 Other current financial liabilities 12 200 000 - Derivative financial instruments 9 428 813 Total current liabilities 524 726 306 599 Total liabilities 1 025 989 953 815 Total liabilities and equity 2 153 543 1 933 723 * The notes on pages 10-35 are an integral part of the group financial statements. ‌Consolidated income statement In 1000 CHF (for the years ended December 31) Notes* 2025 2024 Net sales 28 1 327 834 1 294 573 Cost of goods sold - 973 840 - 965 516 Gross profit 353 994 329 057 Marketing and sales costs - 18 645 - 18 067 Research and development costs - 46 182 - 41 115 Administration and general overhead costs - 80 134 - 80 294 Other operating income 19 14 732 9 679 Operating result 223 764 199 260 Financial income 20 63 2 167 Financial expenses 20 - 8 737 - 8 628 Exchange rate differences 20 - 6 424 3 469 Profit before income taxes 208 666 196 268 Income taxes 4 - 40 292 - 36 379 Net profit incl. minority interests 168 374 159 890 of which attributable to minority shareholders - 285 - 174 of which attributable to shareholders of Siegfried Holding AG 168 659 160 064 Non-diluted earnings per share (CHF) 1 22 3.85 3.71 Diluted earnings per share (CHF) 1 22 3.84 3.69 * The notes on pages 10-35 are an integral part of the group financial statements. 1 At the Annual General Meeting 2025 a share split at a ratio of 1:10 was approved. The prior year was adjusted accordingly for better comparability. ‌Consolidated statement of cash flows In 1000 CHF (for the years ended December 31) Notes* 2025 2024 Net profit incl. minority interests 168 374 159 890 Depreciation and impairment of PP&E and intangible assets 2,3 94 763 84 726 Change in provisions 13 - 5 033 - 1 343 Other non-cash items 1 366 - 15 368 Share-based payments 2 18 7 797 481 Exchange rate differences 20 6 424 - 3 469 Financial income 20 - 63 - 2 167 Financial expenses 20 8 737 8 628 Income taxes 4 40 292 36 379 Net result on disposal of property, plant and equipment 401 197 Cash flow from operating activities before change in NWC 322 058 267 954 Change in net working capital: Trade receivables - 3 400 - 38 888 Other current assets and accruals - 40 356 48 221 Inventories - 30 941 57 772 Trade payables 18 620 - 11 334 Other current liabilities and accruals - 6 806 - 64 133 Payments out of provisions and pension liabilities 13 - 7 989 - 8 146 Income taxes paid - 23 028 - 82 669 Cash flow from operating activities 228 159 168 777 Purchase of property, plant and equipment 2 - 211 914 - 165 301 Proceeds from disposal of property, plant and equipment 160 437 Purchase of intangible and other assets 3 - 19 555 - 15 546 Acquisition of group companies 21 - - 10 138 Investments in financial fixed assets - 4 - 161 Divestments of financial fixed assets - - 1 Interest received 68 360 Dividend received 1 4 Cash flow from investing activities - 231 244 - 190 346 Capital increase - 915 Increase of non-current financial liabilities 12 420 000 175 100 Decrease of non-current financial liabilities 12 - 334 900 - 130 000 Change of current financial liabilities 8 5 021 - Change in other non-current liabilities - 185 Addition of treasury shares - - 18 746 Disposal of treasury shares 1 340 52 Interest paid and bank charges - 6 341 - 9 081 Distribution to the shareholders of Siegfried Holding AG - 16 633 - 15 386 Cash flow from financing activities 68 487 3 039 Net change in cash and cash equivalents 65 402 - 18 529 Cash and cash equivalents 1/1/ 38 756 56 363 Net effect of exchange rate changes on cash - 1 078 922 Cash and cash equivalents 31/12/ 103 082 38 756 * The notes on pages 10-35 are an integral part of the group financial statements. 1 Other non-cash effective changes include in prior year mainly the effect of the discount rate change on foreign pension plan obligations and derivative financial instruments. 2 Includes a deduction of CHF 1.2 million relating to shares withheld to cover tax and social security obligations. Prior year figures include contribution to treasury shares from capital increase CHF -3.8 million. Total Siegfried Holding AG shareholders ‌Consolidated statement of changes in equity Share capital Treasury shares Capital reserves Hybrid capital Value fluctuations of financial instruments 1 Accumulated profits 1 Offset goodwill / badwill 1,2 Cumulative translation adjustments 1 Total minorities Total equity In 1000 CHF As of January 1, 2024 65 233 - 105 844 132 356 80 000 - 3 618 965 407 - 124 094 - 171 203 838 236 - 103 838 133 Net profit - - - - - 160 064 - - 160 064 - 174 159 890 Distribution from nominal capital reduction - 16 246 - - - - 861 - - - 15 384 - - 15 384 Interest/conversion on hybrid capital - 50 490 - - 80 000 - 29 079 - - - 431 - - 431 Changes in financial instruments 4 - - - - - 7 150 - - - - 7 150 - - 7 150 Share-based payments - - - - - 6 136 - - 6 136 - 7 6 129 Issuance of earned shares from share-based payments - 356 - - - - 40 748 - - - 40 392 - - 40 392 Addition of treasury shares 3 - - 22 568 - - - - - - - 22 568 - - 22 568 Disposal of treasury shares - 25 - - - 27 - - 52 - 52 Capital increase 656 - 38 818 - - - - - 39 474 - 39 474 Allocation goodwill / badwill - - - - - - 3 441 - 3 441 - 3 441 Currency translation differences - - - - - - - 18 715 18 715 - 18 715 As of December 31, 2024 49 643 - 77 542 171 174 - - 10 769 1 120 826 - 120 653 - 152 487 980 192 - 284 979 907 As of January 1, 2025 49 643 - 77 542 171 174 - - 10 769 1 120 826 - 120 653 - 152 487 980 192 - 284 979 907 Net profit - - - - - 168 659 - - 168 659 - 285 168 374 Distribution from nominal capital reduction - 17 187 - - - - 555 - - - 16 633 - - 16 633 Changes in financial instruments 4 - - - - 6 665 - - - 6 665 - 6 665 Share-based payments - - - - - 6 175 - - 6 175 - 6 175 Issuance of earned shares from share-based payments - 1 424 - - - - 10 009 - - - 8 585 - - 8 585 Disposal of treasury shares - 707 - - - 633 - - 1 340 - 1 340 Capital increase 110 - 9 405 - - - - - 9 515 - 9 515 Allocation goodwill / badwill - - - - - - 4 192 - 4 192 - 4 192 Currency translation differences - - - - - - - - 23 395 - 23 395 - - 23 395 As of December 31, 2025 32 566 - 75 411 180 579 - - 4 104 1 286 838 - 116 461 - 175 882 1 128 124 - 569 1 127 555 1 In the consolidated balance sheet these items are disclosed as retained earnings. 2 For details refer to note 3 intangible assets. 3 Includes non-cash stock additions of CHF 3.8 million. 4 Includes hedges of equity like loans, for details refer to note 9 derivative financial instruments. ‌Notes to the consolidated financial statements General information Financial statements The financial reporting of the Siegfried Group complies with Swiss GAAP FER and the provisions of Swiss law. The consolidated financial statements are based on historical costs, except for the revaluation of specific financial assets and liabilities, such as derivative financial instruments. As described in the following policies, they are valued at actual value or market value, respectively. The consolidated financial statements are prepared on a going concern basis. The consolidated financial statements of the Siegfried Group are presented in Swiss francs and were approved by the Board of Directors on February 18, 2026, for presentation to the General Meeting held on April 16, 2026. Information about the Group The Siegfried Group is a worldwide pharmaceutical supplier with production sites in Switzerland, the USA, Malta, China, Germany, France and Spain. Under contract to the pharmaceutical industry Siegfried develops manufacturing processes for active pharmaceutical ingredients and their intermediates and produces them (Drug Substances). The Siegfried Group also produces finished pharmaceutical products (Drug Products). Siegfried Holding AG (head office in Zofingen, AG) is listed on the SIX Swiss Exchange. Method and scope of consolidation The consolidated financial statements include the financial statements of all Swiss and foreign companies, in which Siegfried Holding AG controls (generally over 50% of the voting interest) directly or indirectly the financial and operating activities. Assets and liabilities, income and expenses are included according to the full consolidation method. Minority interests in the net assets and income of consolidated companies are recorded separately both in the consolidated balance sheet and the consolidated income statement. Investments in associated companies are accounted for using the equity method. These are companies, over which the Group exercises significant interest, but not control. This is generally the case with a voting rights share of 20% to 50%. Investments in joint ventures are also accounted for using the equity method. Group companies acquired or disposed of during the reporting period are included in or excluded from the consolidated financial statements from the date of acquisition or disposal. The individual financial statements, on which the consolidated financial statements are based, are drawn up in accordance with accounting principles applied consistently throughout the Group. All intercompany transactions, including receivables and payables, income and expenses, unrealized intercompany profits are eliminated in the consolidation. The annual reporting period for all Group companies ends on December 31. Alternative performance measures Siegfried uses certain key figures for performance measurement that are not defined by Swiss GAAP FER. As these key figures are not defined according to Swiss GAAP FER, comparability with similar figures from other companies may be limited. The following alternative performance measures (APM) are used: Gross profit Gross profit is calculated as net sales less cost of goods sold. Cash flow from operating activities before change in NWC The cash flow from operating activities before changes in the net working capital includes the cash flow from operating activities less changes in net working capital, payments out of provisions and pension liabilities and income taxes paid. Free cash flow Free cash flow comprises the cash flow from operating activities plus purchase of as well as proceeds from disposal of property, plant and equipment and of intangible and other assets. Information on the core results can be found on pages 51 to 52. Accounting principles Business combinations Acquisitions of subsidiary companies are reported according to the purchase method. The goodwill or badwill from business combinations corresponds to the difference between the purchase price incl. acquisition costs and the proportional actual value of the net identifiable assets of the acquired company at the time of the purchase. Intangible assets which have not been recognised previously and are relevant to the decision to obtain control are identified, recognised and amortised over the useful life. Purchased goodwill and badwill is eliminated against equity. If the initial accounting for a business combination is incomplete by the end of the reporting period, in which the combination occurred, the combination is accounted for using provisional amounts. Adjustment of the provisional amounts and the recognition of additionally identified assets and liabilities must be undertaken within the mea- surement period, if new information about facts and circumstances is obtained that existed at the acquisition date. Segment reporting The Siegfried Group consists of one "reportable segment". The decision takers measure the performance of the company based on the financial information at the level of the Siegfried Group as a whole. Foreign currency translation The positions of the individual financial statements are valued on a functional currency basis. The consolidated financial statements are denominated in Swiss francs. The functional currency of the Group companies is the respective local currency (LC). Balance sheets stated in foreign currencies are translated at the year-end exchange rates, the corresponding income statements at the average annual exchange rates, which should not differ significantly from the exchange rates prevailing on the transaction dates. The exchange rate differences arising from the translation of the financial statements are recognized directly in the consolidated equity. Exchange rate differences arising on intercompany loans that, in substance, form part of the net investment in that subsidiary, are also recognized in equity. Intercompany loans are regarded as part of a net investment in a subsidiary, if the settlement of these loans is neither planned nor likely to occur in the foreseeable future. All other exchange rate differences are included in the income statement. The exchange rates applied to the Group's most important foreign currencies are as follows: Balance sheet Year-end rates 2025 2024 1 USD 0.793 0.906 1 EUR 0.931 0.941 100 CNY 11.322 12.412 Income statement Average rates 2025 2024 1 USD 0.832 0.881 1 EUR 0.937 0.953 100 CNY 11.565 12.236 Property, plant and equipment Property, plant and equipment are valued at acquisition or production cost less accumulated depreciation. Land is not depreciated. Depreciation is charged on a straight-line basis over the following estimated useful life of the assets: Buildings and leasehold improvements 10-30 years Machinery and equipment 5-15 years Vehicles 5-10 years IT-Hardware 3-5 years If parts of a fixed asset have different useful lives, they are recognized and depreciated as separate assets. The useful lives of assets are evaluated at least once a year at the reporting date and, if necessary, amended. Property, plant and equipment are excluded from the balance sheet upon retirement, or when no value in use can be expected. Maintenance and repair costs are recognized in the income statement. Subsequent purchase and production costs are capitalized, only if a future economic benefit is expected and the costs of the asset can be reliably determined. Leasing Leased property, plant and equipment for which the significant risks and rewards are transferred to the Group are disclosed as financial leases respectively as asset and liability. All other lease agreements are classified as operating leases. Leasing liabilities from operating leases, which cannot be terminated within one year, are disclosed in the notes to the consolidated financial statements. Currently the Siegfried Group has entered only into operating leases and no financial leases. Intangible assets Intangible assets consist of licenses, patents, trademarks, software and land use rights in China. If there are indications of impairment, intangible assets are tested for recoverability. Intangible assets are accounted for at cost of acquisition or of production plus costs of placing it in a usable condition less accumulated amortization and any accumulated impairment losses. Intangible assets are amortized on a straight-line basis over the estimated useful life. All intangible assets are amortized over the shorter of their following legal and economic lives: Land use rights China 50 years Licenses, patents and trademarks The shorter of economic or legal life, as a rule 5-20 years Software 3-5 years Impairment of non-financial non-current assets and intangible assets An assessment whether the value of non-financial non-current assets (PPE) and intangible assets with finite useful life may be impaired is undertaken if as a result of events or changed circumstances it appears possible that the carrying amounts are not recoverable. If the carrying amount exceeds the recoverable amount, then an impairment is recorded to this amount. The recoverable amount is the higher of the asset's net recoverable value and the value in use. When an impairment loss arises the useful life of the asset in question is reviewed and, if necessary, the future depreciation charge is accelerated. An impairment loss recognized in a previous period should be partially or fully reversed if the factors determining the recoverable amount improved significantly. In such cases, the new carrying amount is the lower of the new determined recoverable amount and the carrying amount less depreciation as if an impairment loss had never been recognized. The reversal of an impairment is recognised in the operating result. Securities/financial assets Securities are a part of the current assets and are valued at actual values. If no actual value is available the securities are valued at acquisition cost less any impairment. Financial assets are carried at acquisition cost less impairment, if any. Inventories Inventories include raw materials, supplies, semi-finished goods, finished goods and trading goods. Raw materials are measured at the lower of acquisition or production cost and net recoverable value. Acquisition or production cost are measured using the moving weighted average price method. Production costs comprise all manufacturing costs including an appropriate share of production overheads. They are measured at standard costs. Appropriate valuation allowances are made for obsolete and slow-moving inventory items as well as for Q-blocked goods. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Settlement discounts are treated as reductions in the purchase price. Trade receivables Trade receivables are included initially at nominal value and subsequently at net realizable value; this is equal to the amounts invoiced after deducting allowances for doubtful accounts. Indications for possible impairment are given if the payment is delayed, the customer is experiencing financial difficulties, or recapitalization or bankruptcy is likely. Allowances for doubtful accounts are established based on the difference between the net present value of the nominal amount of the receivables and the estimated net collectible amount. The expected loss is recognized in the income statement in the line item "marketing and sales". When a trade receivable becomes uncollectible, it is derecognized against the allowance for doubtful accounts. Under non-recourse factoring arrangements Siegfried may sell eligible short-term trade receivables to a factor. Trade receivables sold under non-recourse factoring arrangements are fully derecognized from the statement of financial position upon transfer. Siegfried receives part of the consideration immediately in cash, while the remainder is recognized as other receivables against the factor. Once the contractual conditions are fulfilled the factor pays the other receivable. After the sale of those trade receivables Siegfried acts solely as an agent for the factor in collecting customer payments, which are recorded as other current liabilities and remitted to the factor twice a month. Other receivables This caption includes mainly VAT receivables and other receivables. They are recorded at net realizable value. Accrued income and prepaid expenses Accrued income is valued at nominal value and contains payments made for the following financial year and accrued income which will be received in the next period. Cash and cash equivalents Cash consists of cash, balances held in bank accounts and short-term deposits with a maturity of three months or less from the reporting date and are carried at current value. Cash is the defined fund of the consolidated cash flow statement. Equity/treasury shares A purchase of treasury shares by a Group company, including all costs, is recorded against equity, until the shares are redeemed, reissued, or sold. If treasury shares are issued or sold at a later date, the net consideration less directly attributable transaction costs and income taxes is recorded in equity. Financial liabilities All financial liabilities are recorded under current or non-current financial liabilities. The non-current financial liabilities include all liabilities with a residual duration of more than one year. The current financial liabilities include all liabilities with a duration of less than one year, including the current portion of non-current liabilities. If at the reporting date there is a binding commitment to extend a maturing loan, it is classified according to the new duration. Other liabilities Other liabilities are valued at nominal value and contain mainly VAT liabilities and personnel commitments. Accrued expenses and deferred income Accrued expenses are valued at nominal value and contain mainly payments which are due in the following financial year but should be expensed in the current financial year and accrued revenue. Provisions Provisions are recorded if, as a result of a past event, there is a justified probable obligation, the amount and/or due date of which is uncertain but can reasonably be estimated. The calculation of the provision is based on the estimate of the cash outflow to settle the obligation. If time is a significant factor, the amount of the provision is discounted. Employee benefits Pension plans The Group operates various employee benefit plans in and outside Switzerland for employees who satisfy the participation criteria. The pension benefits paid are governed by the legal requirements in the respective countries. Most of the employees of the Swiss companies in the Siegfried Group are insured in its own pension fund, the Pensionskasse Siegfried, Zofingen, legally autonomous foundation. The pension fund is financed by employee and employer contributions. In addition, there are affiliations to two collective foundations. Abroad, there are separate pension solutions in Germany for Siegfried PharmaChemikalien Minden GmbH, in France for Siegfried St. Vulbas SAS, in Spain for Siegfried Barbera S.L. and Siegfried El Masnou S.A. as well as for the companies in the USA. The effective economic effects of all Group pension plans are calculated annually at the reporting date and the resulting liability or economic benefit is recognized in the balance sheet. Pursuant to Swiss GAAP FER 16, economic liabilities and benefits of Swiss pension plans are determined on the basis of accounts drawn up in accordance with Swiss GAAP FER 26. For the valuation of foreign pension obligations, actuarial reports are obtained that are based on dynamic models in line with the international accounting standards. Employer contribution reserves are recognized as assets, provided they are not covered by a waiver of use. Changes in value of employer contribution reserves or liabilities are recognized as personnel expenses. Share-based payments For the members of management a long term incentive plan (LTIP) exists. At the beginning of a vesting period of three-years the plan participants acquire a defined number of performance share units (PSU). The valuation of the PSU is undertaken by an external company, which is specialized in the valuation of option and equity plans. The expenses are recognized as personnel expenses on an equal basis over the vesting period. After the three-year vesting period the plan participants are allocated between 0 and 1.5 shares per acquired PSU. Further an employee share purchase plan (ESPP) exists that allows employees, which can not participate in the LTIP, to purchase shares at their own cost up to 10% of their annual base salary and, after two years (subject to an active employment relationship), to receive one share for free for every two investment share purchased (2:1 matching). Furthermore, there is a share matching plan (SMP) in place, allowing employees to purchase Siegfried shares at their own cost up to a maximum of 10% of their annual base salary and, after three years (subject to an active employment relationship), to receive one share for free for every investment share purchased (1:1 matching). The ESPP and the SMP are considered equity-settled share-based payment plans. The fair value of the shares corresponds to the fair value at grant date. Costs for the employee share plans are recorded as personnel expenses in the period in which the employee performed his/her services. Siegfried acquired three BASF sites in 2015. BASF operated an employee share purchase plan, under the terms of which employees were able to acquire rights to future bonus shares by purchase with their own funds. In order to be able to offer the employees suitable compensation for the future rights existing at the date of the sale, a share plan limited to ten years was launched, under which the employees will receive Siegfried shares free of charge in the years 2016-2025. Profit sharing/bonus plans The Group operates a short term incentive plan (STIP), which is compensated annually in cash. These bonus entitlements in cash are recognized on an accrual basis as a liability and expense, if there is a contractual commitment or past business practice that constitutes a de facto commitment. The amount of the performance-based remuneration paid under the STIP is linked to the achievement of corporate, functional and individual targets. At the end of the one-year performance period it is determined whether the corporate, functional and individual goals have been achieved. The achievement scale for the corporate targets stretches from 0% to a maximum of 200%, for functional and individual targets from 0% to a maximum of 150%. Taxes The tax expense for the period comprises current and deferred taxes. Current income taxes are calculated on the basis of the taxable result and the tax rate applicable locally. Provisions are made for deferred taxes on all temporary differences between amounts determined for tax purposes and those reported for Group accounting purposes at the actual local tax rates likely to be applied. Deferred tax assets arising from temporary timing differences and tax loss carryforwards are recognized if it is probable that future taxable profits will be available against which the deferred tax assets can be utilized. Management analyzes on an annual basis the financial situation and the expected profits of the concerned companies. Changes in deferred taxes are recognized against net profit unless the tax relates to an item recognized directly in equity. No provisions are made for deferred income taxes on potential future dividends out of retained earnings, as these sums are deemed permanently reinvested. Net sales, services and long-term contracts Net sales represent amounts received and receivable for goods and services supplied to customers after deducting discounts and volume rebates and excluding sales and value-added taxes. Revenue from the sale of goods is recognized when the benefits and risks as well as the authority of ownership have passed to the buyer. Income from services is recognized on an accrual basis in accordance with the underlying service agreements. Development projects and other long-term projects are recognized in accordance with Swiss GAAP FER 22 as long-term contracts. If all the conditions for the application of the percentage of completion method (PoCM) are fulfilled, revenues and profit are realized in line with the progress of the contract; otherwise they are realized on completion of the contract (CCM - completed contract method). The degree of completion is determined using the cost-to-cost method. Cost of goods sold The production costs of the goods sold and services rendered include the direct production costs and the production overheads. Other operating income The other operating income includes gains on the sale of fixed assets and income from activities that are not part of the Siegfried Group's core business. Research and development Research and development costs include wages and salaries, development costs, costs of materials and overheads and are directly expensed. Dividends Dividends to shareholders are recorded as liabilities at the time the resolution to pay a dividend is made. Government grants In connection with investment projects some subsidiary companies in the Siegfried Group receive government grants. Government grants are recognized at fair value, only if there is a high probability that the conditions will be met. The grants are recognized in income in the periods, in which the company recognises the related expenses. If the government grants relate to fixed assets, they are deducted in determining the carrying amount of the fixed assets. The grant is recognized as reduced depreciation over the useful life of the depre-ciable fixed assets. Transactions with related parties Transactions with related parties are defined as a business relationship with shareholders of the Group, with companies which are fully consolidated and other related parties as defined under Swiss GAAP FER 15. Commitments and contingencies The operations of the Group companies continue to be exposed to risks from political, legal, fiscal and regulatory developments, including those related to environmental protection. The nature and frequency of these developments and events, which are not covered by any insurance, are not predictable. Possible obligations that are dependent on future events are disclosed as contingent liabilities. Company-wide risk management The company-wide risk management is based on the ISO 31000 standard for risk management and is adjusted to the specific situation of the Siegfried Group. The risk management concept is assessed annually and, if necessary, adjusted and improved. Core targets of company-wide risk management With this risk management concept, a well-established risk culture firmly anchored in the company, and clearly defined risk processes, we strive to increase transparency about the risks in the company, which allows us to avoid, transfer or, if worthwhile, carry risks. Identification, evaluation and management A risk register is used to assess and classify risks according to strategic, operational, financial and external effects. There is also an estimate of the likelihood of occurrence with the possible financial consequences. From this, the measures for the management of the identified risks are derived and also evaluated. The Corporate Risk Committee monitors the aggregated risks for compliance with internal guidelines and processes and is in regular contact with the respective risk managers. The consolidated risk assessment is submitted to the Executive Committee, the Audit Committee and the Board of Directors for review. Reporting is accelerated in the event of new or changing risks. At its strategy meeting on July 2 to 5, 2025, the Board of Directors considered in depth the strategic projects and their inherent risks. When there were significant changes, it also requested relevant information at other meetings about risks associated with strategic projects and approved the implementation of any required actions. Operating risks were discussed and assessed by the Board of Directors at its regular meetings. The most important operational risks per area were defined on November 14, 2025. The annual report on the internal control system, including its assessment, was also approved at the meeting on November 14, 2025. The risk management and the ICS reports were also pre-discussed in the Audit Committee on November 10, 2025. Financial risk management Financial risk management within Siegfried Group is governed by policies and guidelines approved by management. These policies cover foreign exchange risk, interest rate risk, market risk, credit risk and liquidity risk. Group policies also cover the investment of excess funds and the raising of debts. Both the investment of excess funds and the raising of current and non-current debts are centralized. Risk management strives to minimize the potential negative effects on the Group's financial position. Market risks Siegfried is exposed to market risks which consist mainly of foreign exchange risk, interest rate risk and market value risk. Foreign exchange risks Siegfried operates across the world and is therefore exposed to movements in foreign currencies affecting its reporting in Swiss francs. Foreign exchange risks arise on business transactions that are not conducted in the Group's functional currency. Siegfried continues to monitor its currency exposures. The Group seeks to reduce the foreign exchange risk with natural hedges. If necessary, the Group will also take forward contracts, swaps or currency options into consideration. The Siegfried Group is principally exposed to currency risk with respect to the USD and the EUR and to a lesser extent the CNY. Interest rate risks Interest rate risks arise from movements in interest rates, which could have adverse effects on the Group's net profit or financial position. Interest rate movements can result in changes in interest income and expense on interest bearing assets and liabilities. In addition, they can also, as described under the market value risks below, impact specific assets, liabilities and financial instruments. Within the Siegfried Group, interest rate management is centralized. Market value risks Changes in the market value of financial assets and derivative financial instruments can affect the financial position and net profit of the Group. The Siegfried Group does not hold financial investments for speculative purposes. Non-current financial investments, such as investments in subsidiaries, are held for strategic reasons. Risks of loss in value are minimized by thorough analysis before purchase and by continuously monitoring the performance and risks of the investments. Liquidity risks The Group companies need to have sufficient access to cash to meet their obligations. The treasury department manages the raising of current and non-current debt centrally. Cash flow forecasting is performed by the operating entities of the Group and aggregated and monitored by Group Treasury. Credit risks/counterparty risks Credit risks arise from the possibility that the counter-party to a transaction may be unable or unwilling to meet their obligations, causing a financial loss to Siegfried. Trade receivables are subject to active risk management focusing on the monitoring and controlling of risks. The credit risks on other financial assets are limited by the policy of restricting them to institutional partners. Where possible, the latter are controlled by an ongoing review of the classification of their creditworthiness and the limitation of aggregated individual risks. In addition, the investment of liquid funds with a single credit institution is limited. Capital risk The capital of the Siegfried Group is managed with a view to ensuring the continuation of operations, to earning an adequate yield for the shareholders and to optimizing the capital structure in order to reduce the cost of capital. The Siegfried Group monitors its capital structure by reference to the net debt ratio and the equity ratio. The net debt ratio is defined as net debt (cash balances less bank borrowings) divided by EBITDA (operating result plus depreciation of property, plant and equipment and impairment of intangible assets). The equity ratio is defined as equity divided by total assets. Derivative financial instruments To manage currency and interest rate exposure, Siegfried may use forward exchange contracts as well as interest rate and currency swaps or put options. Derivatives used to hedge changes in value of an existing underlying transaction are recognized applying the same valuation principles that are applied to the underlying hedged transaction. A derivative is derecognized as soon as it matures (or an early option is exercised) or as soon as, following a sale or default by the counterparty, no further claim on future payments exists. Estimates, assumptions and accounting judgments The compilation of consolidated financial statements in accordance with Swiss GAAP FER requires estimates, assumptions and accounting judgments. The most important forward looking assumptions, from which a substantial risk may arise that could lead to a material adjustment to assets and liabilities within a year, are outlined on the following paragraphs. Receivables Receivables are initially recorded at nominal value and subsequently adjusted to net realizable value by deducting allowances for doubtful accounts. Indicators for impairment include delayed payments, customer financial difficulties, or potential recapitalization or bankruptcy. Allowances are established to cover collectability risks, determined through a direct analysis of outstanding receivables, considering both individual doubtful accounts and general allowances for overdue receivables. Inventory Appropriate valuation allowances are set for obsolete or slow-moving inventory, including Q-blocked goods. Following Group guidelines, inventories at risk of obsolescence or slow turnover are regularly evaluated and potentially written down to their net realizable value. This value is based on the estimated selling price, less applicable variable selling expenses, with considerations for past experience, future demand, and product life cycle. Impairment test of non-financial non-current assets In compliance with the above accounting principles the recoverability of the net assets is tested if there is any indication of impairment. The recoverable amount of the cash-generating unit is calculated using the discounted cash flow method, based on approved midrange plans. These calculations require management to make forward looking assumptions and estimates. In the year under review, no indications were found that would impair the fair value of the net book values. Deferred tax assets Deferred tax benefits from unused tax losses and deductible temporary differences are considered to the extent to which it is probable that future profits will be earned, against which they can be used. Management assesses the capitalization of deferred tax assets on tax losses and tax credits on an annual basis based on the taxable profits expected for the next 5 years. The tax rates are based on the effective and expected tax rates applicable for the relevant companies. Environmental provisions Provisions relate to obligations to eliminate environmental pollution. Future decontamination costs depend on the regulatory status and management decisions on future construction projects. Depending on the nature and scope of the construction projects realized, the obligation to eliminate detrimental effects on the environment is increased or reduced. The environmental provision would as a consequence be higher or lower (see note 13). Restructuring provision The provision relates to restructuring measures and expected costs in connection with the decision to reorganise business activities. These estimates are based on the best knowledge and belief of the Executive Committee about the Group's current and future activities. Pension obligations for foreign pension plans Foreign pension obligations are valued by means of external actuarial reports, unless they are contribution plans. The parameters on which the actuarial report is based, such as discount rate, pension adjustment, increase in income and others, are subject to a certain degree of judgement, as bandwidths exist. The management can define respectively adjust these parameters within these bandwidths. Scope of consolidation The consolidation includes the following companies: Group companies in LC Participation Share capital 2025 Share capital 2024 Operating Alliance Medical Products Inc., Irvine (USA) USD 100.00% 116 521 116 521 Siegfried AG, Zofingen (Switzerland) CHF 100.00% 20 000 000 20 000 000 Siegfried Evionnaz SA, Evionnaz (Switzerland) CHF 100.00% 1 000 000 1 000 000 Siegfried Hameln GmbH, Hameln (Germany) EUR 100.00% 751 000 751 000 Siegfried Malta Ltd., Valletta (Malta) EUR 100.00% 100 000 100 000 Siegfried (Nantong) Pharmaceuticals Co. Ltd., Nantong (China) CNY 100.00% 422 296 722 422 296 722 Siegfried PharmaChemikalien Minden GmbH, Minden (Germany) EUR 100.00% 50 000 50 000 Siegfried St. Vulbas SAS, Saint Vulbas (France) EUR 100.00% 15 200 000 15 200 000 Siegfried USA LLC, Pennsville (USA) USD 100.00% 500 000 500 000 Siegfried Barbera S.L., Barberà del Vallès (Spain) EUR 100.00% 503 000 503 000 Siegfried El Masnou S.A., El Masnou (Spain) EUR 100.00% 10 099 778 10 099 778 SIEGFRIED DiNAMIQS AG, Schlieren (Switzerland) CHF 95.00% 500 000 500 000 Curia Wisconsin Inc., Grafton (USA) USD 100.00% 1 1 Finance and administration Siegfried Deutschland Holding GmbH, Hameln (Germany) EUR 100.00% 1 790 000 1 790 000 Siegfried Deutschland Real Estate GmbH, Hameln (Germany) EUR 100.00% - 25 000 Siegfried Holding AG, Zofingen (Switzerland) CHF 100.00% 32 565 600 49 643 000 Siegfried Hong Kong Ltd., Hong Kong (China) HKD 100.00% 1 000 1 000 Siegfried USA Holding Inc., Pennsville (USA) USD 100.00% 3 000 3 000 Siegfried Pharmaceutical UK Ltd., London (UK) GBP 100.00% 1 1 Siegfried Deutschland Real Estate GmbH in Hameln (Germany) was liquidated on November 30, 2025. Siegfried has acquired a CDMO specialising in early-stage development in Grafton, Wisconsin (US) from Curia Global at July 1, 2024. All fully consolidated investments are wholly owned at 100% by the Group, except for SIEGFRIED DiNAMIQS AG, which represent a 95% interest. Property, plant and equipment Buildings and lease- Machinery In 1000 CHF Land hold improvements and equipment Assets under construction Total Acquisition costs As of January 1, 2024 44 530 421 526 1 327 669 185 283 1 979 007 Translation differences 420 7 797 23 804 2 025 34 046 Change in scope of consolidation 396 2 524 3 585 1 339 7 844 Additions - 5 639 53 988 109 922 169 549 Disposals - - 832 - 15 744 - - 16 576 Reclassifications - 16 638 40 802 - 63 303 - 5 863 As of December 31, 2024 45 346 453 292 1 434 104 235 266 2 168 007 Translation differences - 361 - 10 806 - 32 132 - 4 905 - 48 204 Additions 535 4 704 26 359 179 277 210 875 Disposals - - 403 - 8 808 - 43 - 9 254 Reclassifications 1 20 634 61 462 - 82 446 - 349 As of December 31, 2025 45 521 467 421 1 480 985 327 149 2 321 075 Accumulated depreciation and impairments As of January 1, 2024 - 244 037 933 898 - 1 177 935 Translation differences - 4 466 16 451 - 20 917 Depreciation charge - 15 645 62 631 - 78 276 Disposals - - 667 - 15 233 - - 15 900 Reclassifications - - - 3 209 - - 3 209 As of December 31, 2024 - 263 480 994 538 - 1 258 018 Translation differences - - 6 149 - 22 827 - - 28 977 Depreciation charge - 16 447 68 199 - 84 646 Disposals - - 402 - 8 290 - - 8 692 As of December 31, 2025 - 273 376 1 031 620 - 1 304 996 Net book value 31 December 2025 45 521 194 045 449 365 327 149 1 016 079 Net book value 31 December 2024 45 346 189 812 439 566 235 266 909 988 At December 31, 2025, land included CHF 3.6 million (2024: CHF 3.1 million) undeveloped property. As of December 31, 2025, commitments for the purchase of property, plant and equipment amounted to CHF 51.3 million (2024: CHF 76.8 million). Intangible assets In 1000 CHF Acquisition costs Licenses, patents Trademarks Software Others Software in development Total As of January 1, 2024 10 216 5 759 36 457 5 708 18 947 77 087 Translation differences 740 467 251 253 5 1 716 Change in scope of consolidation - - 68 - - 68 Additions - - 1 745 529 13 272 15 546 Disposals - - - 2 471 - - - 2 471 Reclassification - - 18 095 27 - 12 260 5 863 As of December 31, 2024 10 956 6 225 54 145 6 517 19 964 97 808 Translation differences - 1 233 - 778 - 398 - 446 - 13 - 2 868 Additions 476 - 6 243 637 12 199 19 555 Disposals - - - 79 - 2 - - 81 Reclassification - - 19 281 380 - 19 311 350 As of December 31, 2025 10 199 5 447 79 192 7 086 12 839 114 764 Accumulated amortization and impairments As of January 1, 2024 9 850 5 659 15 668 2 040 - 33 217 Translation differences 721 460 245 84 - 1 510 Amortization charge 384 31 5 953 82 - 6 450 Disposals - - - 2 471 - - - 2 471 Reclassification - - 3 209 - - 3 209 As of December 31, 2024 10 956 6 150 22 604 2 206 - 41 915 Translation differences - 1 233 - 771 - 374 - 144 - - 2 522 Amortization charge 36 30 9 945 107 - 10 118 Disposals - - - 79 - - - 79 As of December 31, 2025 9 759 5 409 32 096 2 169 - 49 432 Net book value 31 December 2025 440 38 47 096 4 917 12 839 65 331 Net book value 31 December 2024 - 75 31 541 4 311 19 964 55 892 120 653 - 4 192 116 461 The goodwill which arose upon the acquisition of Alliance Medical Products Inc. (AMP), the Hameln companies, the BASF sites Evionnaz, St. Vulbas and Minden, DiNAQOR DiNAMIQS AG and Curia Wisconsin, Inc. as well as the badwill which resulted from the acquisition of the Novartis locations Barberà del Vallès and El Masnou and from the asset purchase agreement with Celgene Chemicals Sàrl were set off against the consolidated equity at the date of purchase. If the goodwill and badwill had been capitalized, the effect on the financial statements would have been as follows: In 1000 CHF (for the years ended December 31) 2025 2024 Theoretical goodwill/(badwill) As of January 1 124 094 Goodwill/(badwill) allocation 1 - 3 441 As of December 31 120 653 Accumulated amortization As of January 1 96 741 Amortization 8 049 As of December 31 104 790 Theoretical goodwill/(badwill) December 31 3 911 15 863 1 Includes an adjustment of the badwill from the acquisition of the two spanish production sites. The theoretical useful life applied for straight-line amortization is translated into Swiss francs at the rate prevailing at the date of 104 790 7 760 112 550 15 years as the acquisitions are regarded as long-term investments for Siegfried. The goodwill/badwill from business combinations is acquisition. This procedure avoids foreign exchange adjustments to the theoretical goodwill and badwill movements. In 1000 CHF (for the years ended December 31) 2025 2024 Operating result according to income statement 223 764 199 260 Amortization of goodwill - 7 760 - 8 049 Theoretical operating result incl. amortization of goodwill 216 004 191 211 Net profit incl. minority interests according to income statement 168 374 159 890 Amortization of goodwill - 7 760 - 8 049 Theoretical net profit incl. amortization of goodwill 160 614 151 841 Equity incl. minority interests according to balance sheet 1 127 555 979 908 Theoretical capitalization of goodwill (net book value) 3 911 15 863 Theoretical equity incl. net book value of goodwill 1 131 465 995 771 Income taxes In 1000 CHF 2025 2024 Current tax expense 33 621 31 682 Deferred tax expense 6 671 4 697 Total income taxes 40 292 36 379 Profit before income tax 208 666 196 268 Group's effective income tax rate 19.3% 18.5% In 1000 CHF 2025 2024 Average expected tax rate 15.7% 15.7% Average expected income taxes 32 731 30 843 Reassessment of tax loss carry-forwards - - 1 576 Non-recognition of tax loss carry-forwards 5 536 9 137 Non-deductible expenses 3 669 - Other effects - 1 644 - 2 026 Group's effective income taxes 40 292 36 379 Group's effective income tax rate 19.3% 18.5% In 2025, the Group's average expected tax rate is 15.7% (2024: 15.7%). The effective tax rate based on earnings before taxes is 19.3% (2024: 18.5%). In 1000 CHF December 31, 2024 Change December 31, 2025 Deferred tax assets 17 918 - 5 697 12 221 Deferred tax liabilities 18 435 2 446 20 881 Deferred tax assets of about CHF 12.2 million (2024: CHF 17.9 million) consist of temporary differences and tax loss carry-forwards from individual subsidiaries. As of December 31, 2025, deferred tax assets were capitalized of CHF 4.4 million on tax loss carry-forwards (2024: CHF 4.9 million). The other deferred tax assets of CHF 7.8 million are mainly due to temporary differences on liabilities of foreign pension plans (2024: CHF 13.0 million). Deferred tax assets and liabilities are calculated using the tax rates currently applicable and applied to future taxation (CH 15.0%, CN 25.0%, DE 30.0%, FR 25.0%, MT 35.0%, US 21.0%, ES 25.0%). In 1000 CHF 2025 2024 Expiry of unrecognized tax losses and tax credits Within one year 179 - Between one and five years 22 907 24 789 More than five years 95 579 71 859 Total unrecognized tax losses and tax credits 118 665 96 648 Siegfried has unrecognized tax loss carry-forwards in the amount of CHF 118.7 million (2024: CHF 96.6 million). OECD Minimum Taxation (Pillar Two) In December 2023, Switzerland enacted legislation implementing the OECD minimum taxation rules ("Pillar Two"). The Swiss qualified domestic minimum top-up tax (QDMTT) has been effective since January 1, 2024, followed by the international top-up tax under the Income Inclusion Rule (IIR) as of January 1, 2025. Pillar Two introduces a minimum effective tax rate of 15% for large multinational enterprise groups. Based on management's assessment, the transitional Country-by-Country Reporting (CbCR) safe harbour requirements will not be met for the Swiss entities of the Group for the 2025 financial year. The Group has recognized a Swiss top-up tax expense for the 2025 financial year of CHF 3.1 million. Accrued income and prepaid expenses In 1000 CHF 2025 2024 Accrued income from sale of products / services 30 688 16 387 Prepaid insurance and accrued bank charges and financing costs 2 118 1 125 Other prepayments 14 278 15 830 Others 1 186 1 154 Total accrued income and prepaid expenses 48 270 34 497 Inventories In 1000 CHF 2025 2024 Raw materials 137 540 133 500 Semifinished goods 203 049 195 070 Finished goods and trading goods 110 704 89 532 Valuation allowances for inventory - 43 741 - 30 521 Total inventories 407 551 387 580 Produced intermediates are reported together with the work in process as semifinished goods. As of December 31, 2025, there are CHF 24.5 million semifinished goods from PoCM orders booked in inventory (2024: CHF 10.9 million). Other current assets In 1000 CHF 2025 2024 Social security receivables and advances to employees 4 470 2 808 Prepayments to suppliers 1 953 2 741 VAT receivables 57 380 47 205 Others 1 23 366 11 703 Total other current assets 87 169 64 457 1 Including a receivable of CHF 9.8 million (2024: CHF 0.0 million) from factoring, see note 8 trade receivables. Trade receivables In 1000 CHF 2025 2024 Trade receivables 394 980 396 882 Allowances for doubtful accounts - 3 291 - 1 874 Total trade receivables 391 690 395 008 The allowances for doubtful accounts are calculated using the difference between the nominal amount of the receivables and the estimated net amount collectible. The net amount collectible is estimated on the basis of experience. In 1000 CHF 2025 2024 Not yet due 330 681 366 976 Due 0 - 3 months 57 389 21 167 Due > 3 months 3 620 6 865 Total trade receivables 391 690 395 008 On December 2, 2025, Siegfried entered into a non-recourse factoring agreement, under which the factor may purchase eligible receivables up to a maximum of CHF 50 million. As of the reporting date, trade receivable of CHF 50.0 million (2024: CHF 0.0 million) had been sold and fully derecognized. Of this amount, Siegfried received CHF 40.2 million (2024: CHF 0.0 million) in cash from the factor, while the remaining CHF 9.8 million (2024: CHF 0.0 million) was recognized as other receivables. Other current liabilities representing amounts collected on behalf of the factor and awaiting transfer to the factor totaled CHF 5.0 million (2024: CHF 0.0 million). Derivative financial instruments The guidelines on financial risk management are described in the accounting principles. Within the framework of these guidelines the Siegfried Group uses derivative financial instruments to hedge foreign exchange and interest rate risks. The contract value provides information about the volume of outstanding transactions. At the reporting date foreign exchange and interest hedging contracts were open. Foreign currency forward contracts were used to hedge net payment flows in the financial year 2025 aggregating USD 85.5 million, EUR 58.0 million and CHF 0.1 million (2024: USD 73.3 million, EUR 59.7 million and CHF 0.1 million). The changes in fair value of these foreign exchange contracts are recognized in the financial result and in equity depending on the underlying instrument. Contract value Positive fair value Negative fair value 121 309 121 580 121 580 121 309 6 - - 6 428 813 813 428 In 1000 CHF 2025 2024 2025 2024 2025 2024 Foreign currency swaps Total Long-term intra-group loans with equity characteristics As part of the Group's intra-group financing, loans are granted to group companies that are economically regarded as part of a net investment in those entities. Such loans are considered part of a net investment if their repayment is neither planned nor likely in the foreseeable future. The resulting foreign exchange translation differences are recognised directly in consolidated equity, without af- fecting profit or loss. In line with the foreign exchange differences on loans classified as part of a net investment in group companies, changes in the fair value of the derivatives are also recognised directly in consolidated equity. Cumulative fair value changes are recognised in profit or loss only upon the disposal or liquidation of the foreign subsidiary. The effectiveness of the hedging relationships is reviewed on a regular basis. As at the balance sheet date, the following loans are considered and hedged as net investments in group companies: In 1000 USD 2025 2024 Siegfried USA Holding Inc., Pennsville (USA) 108 500 107 000 Siegfried USA LLC, Pennsville (USA) 120 000 65 000 Total 228 500 172 000 For the purpose of hedging against currency fluctuations, foreign exchange swaps in an amount of USD 45.7 million (2024: USD 34.4 million) are entered into on a monthly basis on an ongoing basis. In addition, USD 182.8 million (2024: USD 137.6 million) is hedged by means of foreign exchange forward contracts within a defined hedging bandwidth, which reduces hedging costs. The change in fair value of the foreign exchange swaps amounted to CHF 2.6 million (2024: CHF -3.0 million), and the change in fair value of the foreign exchange forward contracts amounted to CHF 4.0 million (2024: CHF -4.2 million). Share capital - hybrid capital -conditional capital The share capital of Siegfried Holding AG decreased net by CHF 17.0 million, reflecting a repayment of par value to the shareholders in the amount of CHF 17.1 million, partially offset by CHF 0.1 million from the issuance of shares under the employee benefit programmes. The nominal value per share was decreased from CHF 11.00 each to CHF 7.20 each by resolution of the general assembly on April 10, 2025. At the same time a share split at a ratio of 1:10 took place. The capital reduction and the share split were publicly certified on April 10, 2025. As of December 31, 2025 the share capital amounts to CHF 32.6 million and it is divided into 45 230 000 registered shares with a par value of CHF 0.72 each (2024: 4 513 000 registered shares with a par value of CHF 11.00 each). In 2025, Siegfried Holding AG has conditional capital of CHF 1 548 000 for the creation of 2 150 000 shares (par value of CHF 0.72) to serve the Long Term Incentive Plan (LTIP) and other employee benefit plans (2024: CHF 2 475 000 for 225 000 shares with a par value of CHF 11.00). In 2025, 10 000 shares were allocated for participation programs from conditional capital (2024: 45 000 shares). This was followed by a share split at a ratio of 1:10 which was approved at the Annual General Meeting on April 10, 2025. December 31, Before share December 31, Conditional capital (number of shares) 2024 Change split 2025 Long Term Incentive Plan (LTIP) and other employee benefit plans 225 000 - 10 000 215 000 2 150 000 Total 225 000 - 10 000 215 000 2 150 000 Siegfried Holding AG has a capital band ranging from CHF 32.6 million to CHF 35.8 million, within which the Board of Directors is authorised until April 10, 2030, or until an earlier expiry of the capital band, to increase the share capital once or several times and by any amounts, either by issuing up to 4 523 000 fully paid registered shares with a par value of CHF 0.72 each or by increasing the par value of the existing registered shares. The accumulated non-distributable reserves amounted to CHF 21.4 million (2024: CHF 24.8 million). Treasury shares Treasury shares are deducted at transaction value directly from equity. At December 31, 2025, the book value of the treasury shares was CHF 75.4 million (2024: CHF 77.5 million). At the Annual General Meeting on April 10, 2025 a share split at a ratio of 1:10 was approved. The first trading day of the split shares was April 28, 2025. The following information refers to the number of shares after the split. The prior year was adjusted accordingly for better comparability. In 2025, Siegfried held 1 421 560 shares at year end which is a decrease by 40 170 shares (2024: decrease by 774 800 shares). The shares are valued at the average rate. CHF Number of shares Average prices At January 1, 2024 2 236 530 47.33 Additions 2024 232 140 97.22 Disposals 2024 1 - 7 410 104.98 Servicing of convertible bonds - 999 530 80.04 At December 31, 2024 1 461 730 53.05 Additions 2025 10 98.80 Disposals 2025 1 - 40 180 84.70 At December 31, 2025 1 421 560 53.05 1 Disposals include allocations from share-based payments from treasury shares (2025: 26 860 shares; 2024: 6 940 shares). Financial liabilities Interest of the existing syndicated loan agreement in the amount of CHF 400.0 million is based on SARON (CHF), SOFR (USD) and Euribor (EUR), plus an interest margin that depends on a financial covenant of a maximum debt ratio. The Siegfried Group fulfilled this covenant at the year end. At December 31, 2025, the syndicated loan was utilized in the amount of CHF 75.0 million (2024: CHF 290.0 million). In 2024, the second extension option was exercised, extending the syndicated loan until March 2027. On May 19, 2021, Siegfried Holding AG placed a senior bond in the amount of CHF 200.0 million on the Swiss capital market. The bond was issued with a term of 5 years and a coupon of 0.20%. On September 11, 2025, Siegfried Holding AG placed an additional senior bond in the amount of CHF 300.0 million on the Swiss capital market. The bond was issued with a term of 6 years and a coupon of 1.30%. In addition, private mandatory convertible bonds in the amount of CHF 0.1 million each were placed on October 1, 2024 and May 1, 2025 (interest rates of 1.75% and 1.65% respectively) with a term of 7 years each. Provisions In 1000 CHF Environmental provisions Restructuring provisions Other provisions Total As of January 1, 2024 13 941 17 816 134 31 891 Costs incurred - 719 - 3 334 - - 4 053 Additions, interest 62 486 - 548 Discounting environmental provision, Releases of unused provisions - 1 821 - - 70 - 1 891 Currency translation - - 3 3 As of December 31, 2024 11 463 14 968 68 26 499 Thereof current 2 863 3 236 20 6 120 Thereof non-current 8 599 11 733 49 20 380 As of January 1, 2025 11 463 14 968 68 26 499 Costs incurred - 756 - 3 330 - - 4 085 Additions, interest 529 1 - 530 Discounting environmental provision, - - 5 563 - - 5 563 Releases of unused provisions Currency translation - - - 1 - 1 As of December 31, 2025 11 236 6 076 67 17 380 Thereof current 2 900 1 760 20 4 680 Thereof non-current 8 335 4 317 48 12 701 Environmental provisions The Siegfried Group produces chemical products at various locations. The production process is such that undesirable incidents may also arise, which result in an obligation to remedy pollutant effects on the environment. Possible remediation obligations of CHF 11.2 million have been provided for (2024: CHF 11.5 million). The liabilities are recognized in the accounting period in which the obligation becomes evident. A provision is recorded if it is expected that the obligation results in an outflow of economic resources in the medium term and if a reasonable estimate of that obligation can be made. By their nature the amounts and timing of any outflows are difficult to predict. Environmental assessments were prepared in connection with planned construction projects. In the reporting period costs for remediation incurred of CHF 0.8 million (2024: CHF 0.7 million). In the previous year, a reassessment led to a discount of CHF 1.8 million. The start of the planned construction projects is anticipated within the next 15 years. The environmental provision was discounted with 1.5% (2024: 2%) to the present value of the expected expenditures. The compounding amounted to CHF 0.5 million (2024: CHF 0.1 million). Management reviews the provisions annually, based on regulatory changes or changes in planned investments. Restructuring provisions With the recording of the net assets of the two Spanish production sites in 2021, due to decreasing needs of the seller and measures already initiated before the acquisition, restructuring provisions of CHF 27.7 million had to be recognised. It is not assumed that this can be compensated by new business. At the end of the reporting period the provision amounted to CHF 6.1 million (2024: CHF 14.8 million). In 2025, CHF 2.9 million have been used (2024: CHF 2.9 million) and CHF 5.3 million were released. In the previous year, the remaining CHF 0.4 million from the asset deal with Celgene Chemicals Sàrl were used. Other provisions Other provisions of CHF 0.1 million (2024: CHF 0.1 million) include legal claims. In the previous year, CHF 0.1 million were released for product warranties. Other non-current liabilities Other non-current liabilities of CHF 19.3 million (2024: CHF 32.7 million) contains in addition to obligations for long-service awards a liability of CHF 16.8 million (2024: CHF 30.3 million) in connection with the acquisition of the Novartis companies on January 1, 2021 (earn-out), see note 16 for the current part of the earn-out. Accrued expenses and deferred income In 1000 CHF 2025 2024 Bonus and personnel liabilities 26 962 26 037 Vacation and overtime accruals 8 374 8 117 Deferred income 13 287 12 213 Other 14 924 15 185 Total accrued expenses and deferred income 63 547 61 552 Other current liabilities In 1000 CHF 2025 2024 Social security liabilities 11 486 13 314 Refunds to customers 1 11 978 22 132 Customer prepayments 24 909 23 305 Other taxes 3 991 5 151 VAT liabilities 43 260 32 324 Other 2 15 726 15 198 Other current liabilities 111 351 111 424 1 Including a liability of CHF 6.4 million (2024: CHF 15.9 million) from the MSA with Novartis. 2 Including a liability of CHF 5.3 million (2024: CHF 9.4 million) in connection with the acquisition of the Novartis companies on January 1, 2021 (earn-out), see note 14 for the non-current part of the earn-out. Employee benefits and personnel expenses In 1000 CHF 2025 2024 Wages and salaries 1 321 071 300 779 Share-based payments 1 9 041 8 953 Pension expense 5 572 13 240 Expenses for other long-term employee benefits 431 371 Social and other personnel expenses 1 74 367 72 931 Total personnel expenses 410 481 396 275 1 These figures include all wages and salaries and, respectively, all share-based payments, including shares allocated to board members and other share-based compensation as well as related social expenses. Prior-year figures have been adjusted. At year-end, the number of employees (in full-time positions) was 3 891 (2024: 3 886). The change in pension expenses is mainly due to the change in the discount rate. The discount rate for the interest on pension liabilities in Siegfried PharmaChemikalien Minden GmbH (DE) increased in 2025 by 80 basis points (2024: increased by 7 basis points). Pension liabilities and economic benefits are as follows: Excess/ insufficient cover 1 Economical part for the company Change vs. PY or taken to the income statement in the FY 2 Contributions limited to the period Pension expenses (personnel) 3 In 1000 CHF Pension institutions without surplus/deficit (CH) Pension plans without own assets (DE) Pension plans without own assets (FR) Pension plans without own assets (USA) Pension plans without own assets (SP) 31 Decem- ber 2025 2 827 - 71 628 - 1 527 - 159 - 31 Decem- - 29 - 71 628 - 1 527 - 159 - - 73 343 ber 2025 31 Decem- ber 2024 - - 84 206 - 1 357 - 453 - 31 Decem- 11 858 3 908 20 1 446 748 17 980 11 287 - 7 865 205 1 197 748 5 572 29 - 12 578 170 - 294 - - 12 673 ber 2025 2025 2025 2024 11 051 - 552 230 1 437 1 074 Total 70 487 - 86 016 13 240 1 For domestic institutions, the reported value is based on preliminary unaudited figures. 2 Currency effects adjusted. 3 Including result from ECR. The employer contribution reserves are as follows: Nominal 639 446 446 639 value Waiver of usage Other value adjustments Balance sheet asset Result from ECR in personnel expenses In 1000 CHF 31 Decem- ber 2025 31 Decem- ber 2025 31 Decem- ber 2025 31 Decem- ber 2025 31 Decem- ber 2024 2025 2 024 Pension schemes (CH) 10 605 - - 10 605 9 966 Total 10 605 - - 10 605 9 966 Share-based payments For members of management a long term incentive plan (LTIP) exists. The plan participants receive at the beginning of a three-year vesting period a defined number of performance share units (PSU). At the end of the three-year vesting period the plan participants are allocated, depending on the extent to which they have attained the targets, a certain number of shares per PSU received. The plan was introduced in 2014 and was revised in 2021 to make appropriate adjustments to take account of the significant growth of the company and the strong increase in the share price. Between 0 and 1.5 shares can be allocated per PSU for LTIP grants 2023, 2024, 2025 with a vesting in 2026, 2027, 2028. The plan defines a target amount for the growth in total shareholder return, compound annual growth rate (CAGR) on total shareholder return (TSR weighting 100%). Absolute TSR is the plan target and aims to link the LTIP value at vesting directly with the absolute value created by the company for its shareholders. After allocation, 50% of the shares remain restricted for a three year restriction period starting on the vesting date. The valuation of the PSU is undertaken at the beginning of the relevant vesting period by an external company, which is specialized in the valuation of option and equity plans. In March 2025, the shares were transferred for the performance period 2022-2024. The target achievement and thus the performance factor was 91.37%, i.e. 0.9137 shares were allocated per PSU, see Remuneration Report. Further an employee share purchase plan (ESPP) exists that allows employees, which can not participate in the LTIP, to purchase shares at their own cost. The plan, which was revised in 2024, forsees that after two years, participants receive one share for free for every two investment shares purchased (2:1 matching). In 2025, total 8 140 shares (2024: 10 760 shares) were purchased by employee. Furthermore, there is a share matching plan (SMP) in place, allowing employees to purchase Siegfried shares at their own cost and after three years to receive one share for free for every investment share purchased (1:1 matching). In 2025, employees purchased a total of 5 180 (2024: 5 480) shares. At the Annual General Meeting a share split at a ratio of 1:10 was approved. All prior year figures were adjusted accordingly for better comparability. For the three current plan periods, the following personnel expenses, excluding social security charges, were recognized in 2025 and 2024: LTIP Fair value 2025 Personnel expense Plan period Numbers of PSU (CHF) (in 1000 CHF) 2023-2025 115 092 37.12 584 2024-2026 122 139 73.21 2 067 2025-2027 111 481 66.56 2 473 Total 5 124 LTIP Fair value 2024 Personnel expense Plan period Numbers of PSU (CHF) (in 1000 CHF) 2022-2024 114 658 65.07 828 2023-2025 138 019 37.12 1 129 2024-2026 147 751 73.21 3 606 Total 5 562 Share matching plan (SMP)* Numbers of shares Fair value 2025 Personnel expense Plan period purchased (1:1) (CHF) (in 1000 CHF) 2023-2025 4 580 68.65 95 2024-2026 5 050 88.20 144 2025-2027 5 240 98.00 171 Total 411 Share matching plan (SMP)* Numbers of shares Fair value 2024 Personnel expense Plan period purchased (1:1) (CHF) (in 1000 CHF) 2023-2025 4 790 68.65 106 2024-2026 5 410 88.20 154 Total 260 Employee share plan (ESPP)* Numbers of shares Fair value 2025 Personnel expense Plan period purchased (2:1) (CHF) (in 1000 CHF) 2024-2025 1 5 000 88.20 441 2025-2026 4 070 98.00 199 Total 640 1 Amounts for 2025 include expenses relating to the 2024 plan period. Employee share plan (ESPP)* Numbers of shares Fair value 2024 Personnel expense Plan period purchased (2:1) (CHF) (in 1000 CHF) 2024-2025 1 5 380 88.20 246 Total 246 1 Expenses relating to the 2024 plan period recognized in 2025. * Employees are granted the opportunity to acquire investment shares at a specified point in time under the ESPP or SMP plans. The transaction relating to the acquisition of investment shares by employees does not qualify as share-based payment and is therefore not included in the above personnel expense figures for share-based payments. In addition, Board members' remuneration comprises a share-based component. Shares are granted at the beginning of a Board mem-ber's term. From the date of grant, these shares are subject to a three-year restriction period and are not subject to any performance conditions. For each member of the Board of Directors, a fixed amount is defined as a share component, from which the number of shares allocated is determined based on the share price. For extraordinary services rendered by employees, so-called free shares may be allocated. Furthermore, in accordance with internal regulations, so-called leaver shares may be granted upon retirement or termination for economic reasons. In 1000 CHF 2025 2024 LTIP 5 124 5 562 SMP 411 260 ESPP 1 640 246 VR 946 971 Free shares / Leaver shares 1 921 1 914 Total share-based payments 9 041 8 953 1 Expenses relating to the 2024 plan period recognized in 2025.

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