Schweiter Technologies AG — Annual Report 2024

Feb 26, 2025

ANNUAL REPORT 2024

1 KAPA®PLAST 19MM

KAPA®plast is a lightweight foamboard offering superb printability and crisp images, making it ideal for exhibition stands, window displays, POS/POP displays, and signage.

2 DISPA®RE

DISPA®re is a multi-layer paper board made from FSC®-certified recycled paper, featuring smooth, white surfaces and is ideal for hanging signage, and seasonal indoor advertising campaigns.

3 LUMEX® A

LUMEX® A are premium quality PET- sheets which show good printability with UV curing inks and are ideal for printed translucent signs, as well as small to medium sized displays.

4 SWEDBOARD® FIBRE PREMIUM

SWEDBOARD® Fibre Premium is a FSC® certified paper board with a dust-free core and paper liners with a thin moisture barrier, offering excellent strength and design flexibility for POS/POP and instore signage applications.

5 DIBOND®DIGITAL

DIBOND®digital is an aluminum composite panel with an optimized lacquer system especially for direct to substrate digital printing.

6 CRYLON®RE

CRYLON®re are extruded acrylic sheets made from at least 95% recycled PMMA sheet waste, offering excellent optical properties and are suitable for various indoor and outdoor applications including digital printing.

7 SMART-X®

SMART-X® is a lightweight foamboard ideal for demanding visual communication applications, including outdoor use for up to two years.

8 FOREX®RE

FOREX®re is a lightweight expanded rigid PVC sheet made with approx. 30% recycled material content from post-industrial and post-consumer scraps, featuring smooth natural white surfaces ideal for large volume advertising print campaigns.

9 GP APEX™

GP APEX™ is a high-performance foam board, featuring an extremely flat, rigid and moistureresistance structure that delivers striking digital printing results.

FINANCIAL OVERVIEW

	2024	2023
INCOME STATEMENT (IN CHF M)
Net sales	1 011.3	1 069.6
EBITDA, adjusted1	90.9	89.7
EBITDA	72.2	89.7
EBIT, adjusted1	45.6	50.3
EBIT	23.1	50.3
Net income	12.9	27.6
BALANCE SHEET (IN CHF M)
Total assets	1 069.9	1 042.7
Net operating assets	602.6	615.3
Shareholders' equity	720.1	706.4
Net liquidity	51.5	23.8
STATEMENT OF CASH FLOW (IN CHF M)
Cash flow from operating activities	85.7	78.3
Cash flow from investing activities	–23.3	–42.4
Free operating cash flow	57.2	40.2
KEY FIGURES (IN %)
EBITDA in % of net sales1	9.0	8.4
EBIT in % of net sales1	4.5	4.7
Free operating cash flow in % of invested capital	7.4	5.2
Equity ratio	67.3	67.8
EMPLOYEES (FTE) AS OF 31 DECEMBER
Total employees	4 534	4 598
RATIOS PER SHARE (IN CHF)
Earnings per registered share	9.3	19.3
Equity	503	493
Payout2	15.0	15.0
STOCK MARKET CAPITALIZATION AS OF 31 DECEMBER
(IN CHF M)
Stock market capitalization	591.3	743.1

¹ 2024: adjusted for Accelerate expenses, impact EBITDA: CHF ‑ 18.7 million, impact EBIT: CHF ‑ 22.5 million

² 2024: dividend proposal by the Board of Directors

KEY FIGURES

FREE OPERATING CASH FLOW

SHAREHOLDERS' EQUITY

in CHF m

720

EQUITY RATIO

67%

TABLE OF CONTENTS

ABOUT SCHWEITER
Letter to shareholders	2
Business performance	4
Management and risk assessment	6
Portfolio strategy	7
Operating segment 3A Composites	8
SUSTAINABILITY Leer 25	25
CORPORATE GOVERNANCE Leer	75
COMPENSATION REPORT	99
Report of the statutory auditor	115
CONSOLIDATED FINANCIAL STATEMENTS	119
Report of the statutory auditor	164
ANNUAL FINANCIAL STATEMENTS OF SCHWEITER TECHNOLOGIES AG	169
Report of the statutory auditor	176
INFORMATION FOR INVESTORS	179
Information for investors	179
Five-year review	180
Dates and contacts	181
GLOSSARY	182

LETTER TO SHAREHOLDERS

Dear Shareholders

In 2024, the markets were impacted by several demanding conditions and this led to a limited business visibility. Political uncertainties in many countries created muted investment and consumer sentiment. The European economic weakness continued, driven by high interest rates, only partially compensated by a strong American market. Raw material prices remained volatile.

This challenging business environment resulted in net sales declining by 5% (4% currency adjusted) to CHF 1 011 million for Schweiter Technologies. At the same time, the Group was able to increase the EBITDA to CHF 91 million (9%) adjusted by the one-time expenses related to the "Accelerate" performance and innovation program. The EBITDA profitability went up by 0.6%-points despite lower net sales. The adjusted EBIT reached CHF 46 million (4.5%). The continued focus on free operating cash flow yielded good results and recorded CHF 57 million. This translates to an improved return on invested capital of 7.4% (vs. 5.2% PY). The net cash position improved to CHF 51 million.

For Schweiter Technologies, the year 2024 was a transition year towards sustainably higher profitability. The strategy has been sharpened for the lightweight composite material business named 3A Composites. The business development is fueled by the key trends of weight reduction, enhanced material functionalities, sustainable materials, renewable energy and increased mobility. The company communicated mid-term financial ambitions and the new claim "Making life lighter and more colorful" at the Innovation & Capital Markets Day. The company also reshaped the 3A Composites leadership team with strong internal talents and external experts to expedite the company performance.

In 2024, the company launched and completed the performance and innovation program "Accelerate". It optimized the production footprint by closing sites and by cost reductions across all entities. Further, the Group concentrated the efforts to automate new production lines and to bring innovations to the markets. The "Accelerate" program came with one-time costs of CHF 22.5 million to generate run-rate savings of around CHF 10 million, effective in 2025 already.

The Display business performed quite resiliently in Europe and North America. The business though witnessed in Europe high raw material volatility. Particularly in the second semester, abrupt clear-sheet raw material price declines led to limited sales to distributors. The Group closed a clear-sheet production site in Mainz in order to reduce its exposure to this challenged segment. The Display business made good progress to transform the solution product portfolio towards more sustainable and profitable solutions. In Europe, the house of brands has been expanded with products based on up to 100% recycled materials under the brand addition "RE". The customers also appreciate the lead of the company in measuring the sustainability of the products with the own "FIVE-DOT-Mission" scoring concept. In the USA, the innovation "GP APEX™" has been launched featuring an extremely flat high-performance foam board delivering striking digital print results.

The results in the Core Material business were subdued this year. The wind energy market suffers from PET overcapacities in China, resulting in price erosion, and from slow project approvals in Europe. On the other hand, an encouraging demand for the innovative solutions of 3A Composites can be seen in the Americas. Additionally, the business further capitalized on the recently acquired kitting capabilities. As part of the sharpened strategy, the activities in the marine and technology customer segment have been strengthened. The balsa business performed well for wind and non-wind applications and the Group is proud to have a unique carbon sink with the 15 000 hectares of FSC®-certified plantations.

A bright spot in the business portfolio was the Architecture business. It was growing midsingle digits, although at different rates globally. The business in North America recorded strong results benefitting from the strong economy, building on the premium brand ALUCOBOND® and it further penetrated into new markets of residential constructions with EasyFix and FaceFastened. The innovation Monarc™ opens new doors to the interior building market. The business in Europe was impacted by the weak economic construction market conditions. Finally, the smaller business in Asia suffered with a shrinking market in China while the business in India and the Middle East developed well in dynamic markets.

Transport and Industry generated weaker results. Demand for industrial thermoforming solutions and for rail and road markets experienced notable slowdowns. Hence the company focused its efforts on the "Accelerate" footprint optimization and on developing new product innovations for enhanced, functional performance materials.

The Board of Directors proposes a dividend of CHF 15 per registered share for the year under review. Schweiter Technologies has a solid balance sheet with an equity ratio of 67%.

The year 2025 started with a continuation of political and economic uncertainties. Currently, a flat net sales development is expected for the full year with a weaker first and some recovery in the second semester. The Display business should be quite robust and will further progress with its product portfolio transformation. Attractive opportunities can still be seen in the Architecture business in the Americas and the geographical market penetration in China and India will lead to a broader customer base. The Core Material business is expected to gain market share with its competitive product range of PET and balsa. Improved profitability is expected, driven by the realization of the "Accelerate" measures and continued strong focus on operational excellence measures in particular in procurement.

A sincere thank you goes to our motivated and experienced employees around the world for their tireless commitment and great dedication. Our talents are the foundation for the company's success. The Board of Directors and the Group Executive Management are convinced that the Group has taken the right measures in innovation, sales management and cost measures for a sustainable higher profitability with double-digit EBITDA margins and for higher return on invested capital over the cycle.

Yours sincerely,

Dr. Heinz O. Baumgartner Roman Sonderegger Chairman of the Board of Directors Group CEO

BUSINESS PERFORMANCE

Our markets were impacted by economic and political uncertainties throughout the year, especially in Europe overall and in China for Core Materials in the wind energy industry. Subdued demand in these key markets weighed on the Group results.

The Group sharpened its business strategy and implemented the performance program "Accelerate" to shape the operations for sustainable, profitable growth. The performance program "Accelerate" was executed as planned and fully reflected in the reported numbers with one-time cost impacts on EBITDA of CHF 18.7 million and on EBIT of CHF 22.5 million.

Excluding "Accelerate" impacts, EBITDA after currency adjustments rose by 3% to CHF 90.9 million (previous year: CHF 89.7 million) while EBIT reduced by 7% to CHF 45.6 million (previous year: CHF 50.3 million). Net liquidity reached CHF 51.5 million at year-end and the equity ratio was 67%.

Reported financial figures, including one-time "Accelerate" cost impacts were as follows: Net sales fell by 4% to CHF 1 011.3 million after currency adjustments (previous year: CHF 1 069.6 million). EBITDA reduced by 18% to CHF 72.2 million (previous year: CHF 89.7 million) and EBIT reduced by 53% to CHF 23.1 million (previous year: CHF 50.3 million), while net income fell to CHF 12.9 million (previous year: CHF 27.6 million). Free operating cash flow improved to CHF 57.2 million (previous year: CHF 40.2 million), driven by a set of measures in trade working capital and capital expenditures.

At the Annual General Meeting on 9 April 2025, the Board of Directors will propose paying a dividend of CHF 15 per registered share.

At year-end, the headcount stood at 4 534 (previous year: 4 598), including 1 346 employees in balsa plantations and sawmills in Ecuador and Papua New Guinea.

In 2024, the Architecture business was strengthened with the acquisition of a majority holding of 60% in Jiangsu ZNL Coating New Materials, China, creating opportunities for growth in China and the Asian markets in particular.

At the organizational level, the 3A Composites management team was strengthened through the appointment of a new leader for North America and a new responsible for the European and Asian Architecture businesses under a single leadership. In addition, 2024 marks the first full year with Europe's focused and agile management structure along the three business areas of Display, Architecture, and Industry.

NET SALES 2024 BY BUSINESS AREA

TRANSPORT & INDUSTRY

CHF 159 million net sales

• Vehicle
• Rail
• Construction & Others

ARCHITECTURE

CHF 214 million net sales

• Public infrastructure
• Commercial / Office
• Residential

DISPLAY

41%

21%

16%

CHF 417 million net sales

• Visual communication
• Retail & Services
• Light & Illumination

CORE MATERIALS

CHF 221 million net sales

• Wind
• Marine
• Technology & Others

MANAGEMENT AND RISK ASSESSMENT

MANAGEMENT SCHWEITER TECHNOLOGIES

Roman Sonderegger	Chief Executive Officer Group
Dr. Urs Scheidegger	Chief Financial Officer Group

RISK ASSESSMENT

The risk assessment and risk management within the Group are conducted on several levels and reflect the decentralized structures of Schweiter Technologies.

The individual Group companies are responsible for determining, evaluating, and managing local risks. A systematic identification of higherranking risks that could have a significant impact on the Group and its business activities is carried out at Group level. The risks identified are classified according to the criteria of probability of occurrence and potential impact. Where necessary, individual risks are analyzed in greater depth and measures are taken to minimize these risks.

The Board of Directors discusses the higherranking risks to the Schweiter Technologies Group at least once a year. The last risk assessment by the Board of Directors was performed in December 2024.

PORTFOLIO STRATEGY

An insight into our profile, our culture, and our values.

STRONG PARTNERSHIP

Schweiter Technologies develops business in the composite panels segment. 3A Composites manufactures materials and composite solutions in lightweight construction by combining suitable materials for specific applications and industry segments.

FOCUS ON INNOVATION AND CUSTOMER PROXIMITY

The core of each strategy consists of innovation (the starting point for all success to date), proximity to customers via in-house sales companies and distribution partners, and concentration on sustainably efficient and successful value creation. Schweiter Technologies promotes lean structures and direct communication.

LASTING SUCCESS

The holding company is not interested in buying and selling businesses, but aims to develop them beyond the timespan of those currently in executive posts. Acquisitions are primarily intended to strengthen current positions – divestments take place if there are better owners than Schweiter Technologies, or if there is no prospect of market leader-ship.

SELF-SUFFICIENT UNITS

The individual business units are global market leaders in their segment – or at least have the potential to become global market leaders. Each is autonomous.

PROMOTION OF THE CULTURE

The same care is applied to management development as to business development. A management culture is promoted which goes beyond product or even company cycles.

STREAMLINED STRUCTURES

The structures of the holding company are lean. Apart from supervising executive functions, the Board of Directors is mainly involved in preparing the strategy.

INVESTMENT IN THE FUTURE

Investments are future-oriented, with a dual focus on innovation and acquisitions in existing and/or new areas of business.

OPERATING SEGMENT 3A COMPOSITES

3A COMPOSITES

3A Composites focuses on the development, production, and commercialization of high-quality composites, lightweight boards and core materials based on balsa wood and PET foam. These materials are used in lightweight applications, primarily in the areas of visual communication (display), architecture, wind energy, industry, railway and bus construction as well as and shipbuilding.

In each of its target markets, 3A Composites offers a unique product portfolio for the relevant high-end segment and owns world-renowned brands, including ALUCOBOND®, AIREX®, BALTEK®, DIBOND®, GATOR®, KAPA®, DISPA®, CRYLON®, CRYLUX®, PERSPEX®, and many more.

VISION AND STRATEGY

The 3A Composites business areas specialize on various applications where innovative, sustainable composite material solutions with a lightweight construction supersede traditional materials.

All business areas deliver against the following KEY TRENDS:

• Renewable energy
• Weight reduction
• Sustainable materials
• Colorfulness & enhanced functionalities
• Increased mobility

We sharpened our STRATEGIC PRIORITIES to realize the full potential from the above mentioned key trends:

• Focusing on attractive market segments
• Driving portfolio transformation through innovations: sustainable and competitive solution portfolio
• Promoting operational excellence, high agility and efficiency in all parts of the company
• Generating strong cash flow
• Cultivating a high-performance culture

The following ASSETS are instrumental enablers for continued success:

• House of Brands: broadest product & solution portfolio
• Unique material properties & innovation power
• Global customer proximity & access with high performing team
• FSC-certified Balsa forest "From seed to shaped solutions"
• Diversified with lightweight focus
• M&A competence
• Culture of trust, accountability and performance

3A Composites aims at the following financial AMBITIONS OVER THE CYCLE:

• Net sales growth above market growth
• EBIT margin: 7% to 9%
• Return on Invested Capital: 9% to 11%
• Shareholder-friendly dividend policy

REVIEW OF 2024

"ACCELERATE" PROGRAM

Schweiter Technologies implemented its performance-enhancement program "Accelerate", improving efficiency and fostering innovation. This enables the company to enhance its global competitiveness by increasing its customer proximity and innovative strength and systematically optimizing operational excellence along the entire value chain from purchasing to production and sales.

As part of "Accelerate", Schweiter Technologies closed a 3A Composites acrylics extrusion plant for Display and Industry in Mainz, Germany, by end of November 2024. Prior to closure, the company's management had reached the agreement of a reconciliation of interests and social plan with the works council. The selfpolymerization of MMA (methyl methacrylate) for extruded acrylic sheets was profitable in the past but no longer has a future, due to disruptive changes in the supplier markets. Schweiter Technologies will continue to offer extruded acrylic sheets, but production will be consolidated accordingly.

Additional right-sizing efforts as well as efficiency and innovation measures across the global organization were executed in 2024 as part of the "Accelerate" program.

The global "Accelerate" program incurred oneoff costs of CHF 18.7 million and asset impairments of CHF 3.8 million. The set of measures is expected to achieve an annual reduction in operating costs of CHF 10 million from 2025.

DISPLAY

This business area performed quite resiliently in a challenging market. While in Europe the first half of the year was characterized by stable demand and many customers implemented their planned marketing campaigns, the second half of the year was confronted with adverse developments in the clear-sheet market suffering from an abrupt MMA/PMMA raw material price decline leading to a temporary restraint behavior of our customers in anticipation of lower market prices.

While printable retail signage remains a significant revenue stream of the North America business, a strategic expansion into new markets through product solutions to reflect evolving market needs was successfully executed. Traditional graphic-display products serving the retail signage segment declined below 2023 volumes. Demand from the tradeshow, framing, and wet-wall markets were relatively strong and offset some of the weakness in retail signage. New products were launched in 2024 to strengthen the sustainable and profitable product offering and product portfolio transformation. One solution innovation to be highlighted in particular is GP APEX™, featuring an extremely flat high-performance foam board delivering striking digital print results.

Multiple "Accelerate" measures were implemented to right-size and optimize the Display business, among them the closure of the production site in Mainz.

A COMPELLING BUSINESS IDEA – DIVERSIFIED WITH LIGHTWEIGHT FOCUS

COMPOSITE MATERIAL: ENHANCED FUNCTIONALITIES MAXIMIZE EFFICIENCY

Key benefits of lightweight composite products & solutions

Colorfulness

Optical properties with outstanding brightness and durability of colors

Weight reduction

Compared to traditional materials like metal or wood

Strength and Rigidity

Structures and designs offer exceptional stiffness and strength-to-weight ratios

Thermal insulation

Beneficial for applications requiring temperature control or energy efficiency

Environmental benefits

Often recyclable or made from recycled materials, including circular economy solutions

Flexibility and Versatility

Various forms, sizes & surface finishes allow for intricate designs & customized solutions

Acoustic properties

Good acoustic insulation absorbing or dampening sound waves

Cost-effectiveness

Often require less material for construction, reducing material & transportation costs

Ease of installation

Typically easier to handle & install compared to heavier materials

Shop design, Selfridges, London, UK, PERSPEX®

ARCHITECTURE

The different geographical regions of the Architecture business developed with various speed and the business grew overall compared to prior year. While North America recorded strong results based on a solid economy and strong demand, the opposite picture was witnessed in Europe and Asia. Europe was still affected by low construction activity and Asia's key market China did not yet exit the cauldron of economic challenges and property development crisis.

The North American business is a key supplier of top-tier architectural-façade materials, primarily for commercial construction and multi-family residential houses. Both segments developed well. Expansion of market share and growth in the newly penetrated markets of residential construction as well as the new mounting system offerings ALUCOBOND® EasyFix and ALUCOBOND® Face-Fastened enabled growth over prior year. The North American operation, which is the largest 3A Composites Architecture unit by territory, also launched Monarc™, allowing to move into the building interior.

The European Architecture business continued to operate in a subdued market environment. Construction activity and investment volumes remained low and sales fell below prior year. Thanks to strong efforts on cost and right-sizing measures executed at the production site in Singen, margins were protected.

The Architecture business in Asia/Pacific developed with different patterns in the different regions. The dynamic markets of the Middle East and India generated higher revenues while China and Southeast Asia saw sizable revenue reductions with lower demand and missing large project volumes. In response to the market challenges in China, a comprehensive right-sizing and efficiency gain effort was locally conducted as part of the global "Accelerate" program. As of end of February, Jiangsu ZNL Coating New Materials, China, was consolidated after acquisition of a majority holding of 60%. This innovative manufacturer of aluminum solid sheets is based in Changzhou City, complementing our solutions.

KRC IT Park, Chennai, India, ALUCOBOND® PLUS

Symphony Park, Austin, Texas, USA, ALUCOBOND® PLUS

CORE MATERIALS

Two third of net sales in this business area is related to material for wind turbine blades. The geopolitical and economic climate, particularly in Europe, and sizable price pressure from overcapacities in the Chinese wind value chain, negatively impacted revenues. The well recognized brands of 3A Composites, AIREX®, and BALTEK® provided a price premium allowing to partially offset the pressure on sales prices.

In the Western world, the U.S. wind sector showed encouraging development after a slow start. Meanwhile, in Europe, 3A Composites capitalized on its kitting solutions and successfully integrated JMB Wind Engineering, enhancing its competitive position.

Revenues from non-wind industrial applications continued to grow, driven by material improvements and innovative production processes. Enhanced customer proximity through a global kitting offering contributed to this positive development.

Like all other business areas, Core Materials implemented a set of "Accelerate" measures to right-size its operations in 2024 and to prepare closure of a kitting site in Brazil: It simplified its organizational structure, adjusted its footprint and reduced personnel across the world.

The consolidation of balsa processing sites in Ecuador continued and is nearing completion. Plantations in Ecuador and Papua New Guinea are at healthy levels with expanded planted areas. 3A Composites has a major competitive advantage since it covers the entire value chain in the balsa business (BALTEK® Balsa) from seedlings to its own FSC®-certified plantations, right up to the finished products.

In Europe, the majority of PET product ranges now leverage 100% recycled materials, including post-consumer PET. This innovation provides a distinct competitive edge by delivering the same performance-to-weight ratio as virgin PET products.

Significant progress has been achieved with innovative projects like AIREX® TegraCore™ for high-end applications supporting cost reductions and portfolio enhancements.

Balsa plantation, Ecuador

Construction of INNOVATION YACHTS prototype Open60AAL

INNOVATION YACHTS, BALTEK®

Balsa forest,

Ecuador Blade transport on truck, AIREX® and BALTEK® products used in wind rotor blades

TRANSPORT AND INDUSTRY

This business area suffered with the weak sentiment in the industrial and automotive sector. The construction-related segments and the vehicle market were particularly affected. These market segments experienced a noticeable slowdown resulting in order and sales reductions.

To address the market challenges, a comprehensive restructuring program was conducted and the footprint optimized with the plant closure in Mainz as part of the global "Accelerate" program. Measures taken to reduce costs and improve operational efficiency in all sites proved successful and helped mitigate the impacts of declining sales.

Promising new solutions, such as scratch resistant sheets for sectional garage doors or a new lightweight bus platform, were introduced to the markets and closed loop recycling systems were developed. These innovations strengthen the business and will enable future growth.

ATHLONExtrusions® PMMA/ABS used for excavator cladding parts

ORGANIZATION

The lean and decentralized organization was maintained and strengthened. Jiangsu ZNL Coating New Materials was consolidated after acquisition of a majority holding of 60% at the end of February 2024. The company, based in Changzhou City, China, is an innovative manufacturer of aluminum sheets with a workforce of some 50 employees producing high-quality façade solutions in a variety of colors. This acquisition strengthens the Architecture business and creates opportunities for growth in China and the Asian markets in particular.

The multi-year project of the business area Core Materials to consolidate the balsa processing sites in Ecuador continued and is nearing completion. The global management structure of this business area was reduced and simplified.

The 3A Composites management team was strengthened through the appointment of a new head for North America and streamlined by consolidating the European and Asian Architecture businesses under a single management structure. In all business areas, organizations were simplified as part of the "Accelerate" program.

2024 marks the first full year with Europe's focused and agile management structure in operation, along the three business areas of Display, Architecture, and Industry. Customers' experience with 3A Composites benefits from simpler structures and higher speed – it is easy to do business with 3A Composites.

OUTLOOK

The year 2025 started with a continuation of political and economic uncertainties. Currently, a flat net sales development is expected for the full year with a weaker first and some recovery in the second semester.

Overall, modest growth is expected for the Display business. Europe anticipates growth in the second half of the year from catch-up demand of postponed campaigns and increasing investments supported by sport events and trade shows. Additionally, continued customer focus on sustainable products is a growth enabler where 3A Composites is ideally positioned with its FIVE-DOT-MISSION sustainability scoring concept and the expanding product range of recycled and monomaterial products. Further, more digital tools to interact with our customers will be rolled out. Examples are an enhanced version of the virtual world and the digital chatbot. In North America, resilient demand is expected. Gain of share of wallet with key accounts and targeted sales efforts in the markets of trade shows, framing, industry, and wet walls will support growth. Good order volume is expected with the newly introduced GP APEX™, featuring an extremely flat highperformance foam board delivering striking digital print results.

The Architecture business outlook is promising in North America with increasing number of construction projects in the residential and commercial space. The company owns the most comprehensive metal-façade offering available in the market and plans to fuel its growth by leveraging on the mounting systems introduced lately: ALUCOBOND® EasyFix and ALUCOBOND® FaceFastened. In Europe, the market of the Architecture business for façade materials remains highly competitive. The forecasts for the construction industry shows a flat development. Opportunities with recycled ALUCOBOND® solutions are seen in the area of sustainable and energyefficient façade solutions. Building renovations and the design of façades with integrated functions (e.g. photovoltaics) is another growth opportunity. The overall outlook for the Architecture business in Asia/Pacific remains positive, though with different speed. Many Asian governments are investing heavily in infrastructure, encouraging the construction of airports, railway stations, shopping malls and other public buildings where ACM façades are frequently used. Strong growth is expected in emerging markets such as India, Vietnam, and Indonesia. Also the China business is expected to stabilize. With 3A Composites' production sites in India and China, the business supports the local "Made in China 2025" and "Made in India" initiatives, which aim to lead the local industry into more technologically sophisticated areas and strengthen the company's position as a strong local partner for architects and building owners.

The wind segment of the Core Materials business expects 2025 revenues on similar levels as in 2024. Although megatrends such as the adoption of renewable energy, lightweight materials, and advancements in manufacturing processes support mid-term revenue growth, the outlook for 2025 remains cautious. Political tensions, European economic challenges, and wind market volatility delay growth. For the non-wind applications, growth is expected leveraging on innovationdriven portfolio expansions with new high-end products and enhanced sustainability performance, including increased use of recycled PET and materials with increased performance functionalities like the AIREX® TegraCore™, an ultraperforming, light-weight, fire-resistant and radar transparent core material.

Despite the adverse current market conditions in which the Transport & Industry business operates, potential projects and innovative applications are intact. For instance, 3A Composites is introducing DUROLEN™, a particularly suitable material for thermoforming applications in the areas of agricultural and commercial vehicles as well as caravans. The company further plans to introduce composite material innovations for rail and road with enhanced performance functionalities.

3A COMPOSITES MANAGEMENT

Roman Sonderegger	Chief Executive Officer 3A Composites
Dr. Urs Scheidegger	Chief Financial Officer 3A Composites
Benjamin Burkard	Chief Executive Officer Display Europe
Thorsten Füssinger	Chief Executive Officer Industry Europe
Eric Gauthier	Chief Executive Officer Core Materials
Sonia Mokdad	Chief Executive Officer Architecture Europe & Asia-Pacific
Dr. Armin Raiber	Chief Executive Officer Mobility
Nick Scheib	Chief Executive Officer Americas

EMPLOYEES (FTE)

Year-end

2024	2023	2022	2021	2020
4 527	4 591	4 248	4 436	4 357
1 346 1	1 275 1	1 302 1	1 398 1	1 392 1

thereof employees in balsa wood plantations and sawmills in Ecuador and Papua New Guinea

Colorful product samples of DIBOND® and ALUCOBOND®

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MAKING LIFE LIGHTER AND MORE COLORFUL

Schweiter Technologies is a global industrial group with its branded business «3A Composites» with a leading position in the development, manufacturing and commercialization of lightweight composite solutions. Whether visible or not, many everyday objects contain an element of Schweiter – for example on a seaside promenade.

1 Display – Retail & Services

Our House of Brands (CRYLUX®, FOREX®, DIBOND®, PERSPEX®, DISPA®, IMPEX®, CRYLON®, SINTRA®, GATOR®) provides full product ranges for all retail shop applications: easy to handle and install, infinite colors, made for high-resolution printing, unique surface textures, sustainable.

2 Core Materials – Marine

AIREX® and BALTEK® products used for leisure boats from superstructures, decks to hulls and bulkheads.

3 Core Materials – Sport & Health

Find your flow with the AIREX® Heartbeat mat for yoga and functional training.

4 Display – Retail & Services

DIBOND® used for high-quality, durable printed advertising boards made of aluminum composite panel.

5 Display – Light & Illumination

PERSPEX® Spectrum LED made from cast acrylics offers unlimited versatility, flawless surfaces and weathering resistance.

and SWEDBOARD® paper boards.

SUSTAINABILITY

Sustainability at Schweiter Technologies	26
Innovation and quality	32
Environmental protection and resource efficiency	38
Social responsibility	45
Governance	54
GRI content index	59
Reference table for Art. 964b Swiss Code of Obligations	63
Relocation realizes emissions reduction	64
Implementation life cycle assesments	66
Climate report	68

Sustainability at Schweiter Technologies

BUSINESS MODEL

Schweiter Technologies AG is the holding company of the global 3A Composites Group, operating at production sites, distribution facilities, and administrative buildings at 30 locations in Europe, the Americas, and the Asia/Pacific region, with a workforce of some 4 500 employees.

The business of Schweiter Technologies comprises the development, production and distribution of high-quality composites, paper and synthetic sheets, lightweight boards and core materials based on balsa wood, aluminum, paper sheets, and synthetic foams. These materials are used in lightweight applications, primarily in the areas of visual communication, architecture, wind energy, industry, railway and bus construction and shipbuilding. Typical products are composite sheets for displays, façade and roof panels, foam boards used in vehicles, ships and furniture, rotor blades for wind turbines as well as functional composite parts for railway and industry applications.

The Schweiter Group is active in four main business areas:

– 3A Composites Display

(41% of net sales)

3A Composites Display is a global manufacturer of products used in digital and screen printing, exhibition stand building, shop design and shop window decoration, interior design, photo mounting, for signage, POS/POP displays and furniture construction and many more.

– 3A Composites Core Materials

(22% of net sales)

3A Core Materials is a global leader in sandwich composite technology. The portfolio consists of high-performance, lightweight core materials either made of recyclable polymers (e. g., PET) or from balsa trees planted in company-owned operations.

– 3A Composites Architecture

(21% of net sales)

3A Composites is a global manufacturer of aluminum composite panels for façades and construction applications. The products enable concepts that adapt to multiple locations. Their exceptional weather resistance, durability, and lightweight properties make them suitable for installation in diverse locations and conditions.

– 3A Composites Transport & Industry

(16% of net sales)

3A Composites Transport & Industry manufactures cast and extruded synthetic sheets, aluminum composite materials, and lightweight foam boards for sectors including agricultural and commercial vehicles, caravans, sanitary ware, furniture, and shipbuilding. They also produce integrated lightweight systems with advanced composite materials, offering adaptable solutions to support sustainable mobility across various vehicle types.

Key raw materials for 3A Composites products are aluminum, synthetic materials, wood, and paper-based materials. The majority of balsa wood for the wind turbine blades and applications in the marine, automotive and railway, building and construction and industrial sectors is grown by 3A Composites Core Materials in its own plantations in Ecuador and Papua New Guinea. These plantations, where around one-third of Schweiter Technologies' own workforce is employed, are 100% FSC®-certified.

The most important sales markets are Europe (58% of net sales), North and South America (29% of net sales), and Asia/Pacific (12% of net sales). Further information on the sales structure is available on p. 5.

ESG GOVERNANCE STRUCTURE

Sustainability is an integral part of the business strategy at Schweiter Technologies.

The ultimate responsibility for all strategic aspects of ESG lies with the Board of Directors. Its tasks include validating the sustainability strategy and targets as well as reviewing the performance and the Sustainability Report. To foster sustainability initiatives and manage the strategic delivery of ambitious projects, a Sustainability Board and an Operational Team, coordinated by the Global Director Sustainability, have been established in the last two years.

The Global Director Sustainability informs the Senior Management at regular intervals regarding the corporate sustainability performance, progress towards targets, as well as opportunities and risks arising from ESG issues. Besides, he coordinates the Sustainability Operational Team, which assesses and consolidates this information, outlines the sustainability strategy and advances the associated concepts and measures – to submit for approval to the Senior Management. The Sustainability Operational Team, consisting of representatives from all regions and business areas, further develops the yearly

Corporate Sustainability report for Schweiter Technologies.

The members of the Sustainability Board are the Group CEO, Group CFO, CEO 3A Composites Americas, CEO Display Europe, CEO 3A Mobility, Chief Human Resources Officer, General Counsel, and Global Director Sustainability. The Sustainability Board meets three times a year to review, prioritize, and approve sustainability initiatives and is accountable to the Board of Directors.

The Operational Team meets in monthly sessions and prepares the agenda for the Sustainability Board. A Core Team within the Operational Team works on current topics and prediscusses subjects that will be researched, implemented and executed with the entire Operational Team. Overall, this results in a three-stage analysis and decision-making process that covers the entire sustainability management.

In view of the decentralized company structure, operational sustainability initiatives and projects are planned and implemented in close cooperation by the respective location managers and the CEOs responsible for the corresponding region and business area, respectively.

Body function	ESG responsibility	Operational tasks
Board of Directors	Ultimate ESG responsibility	– Validate corporate ESG strategy – Validate Sustainability Report (yearly)
Sustainability Board (including Global Director Sustainability)	Main implementation responsibility	– Approval of sustainability topics – Approval of concepts to implement strategy – Review of performance and initiation of corrective measures – Review of ESG risks and opportunities – Review of Sustainability Report
Sustainability Operational Team (including Global Director Sustainability)	Development & Monitoring responsibility	– Assessment of sustainability topics – Assessment of ESG risks and opportunities – Development of the sustainability strategy (incl. targets and KPIs) – Development of concepts and measures to implement strategy and to track performance (monthly and on demand) – Development of the Sustainability Report (yearly)
CEOs of business areas	Operational responsibility	– Implement measures such as initiatives and projects – Track performance towards targets – Data and information delivery for sustainability reporting (continuously)

SUSTAINABILITY STRATEGY

Schweiter Technologies creates value for its employees, customers, and shareholders. The company positions itself as a reliable partner and supplier. A responsible approach to business is firmly rooted in the corporate culture. The strategic foundation for sustainability management at Schweiter Technologies is composed of its material topics.

Corporate sustainability strategy

Incorporating environmental and social considerations into an economically viable Group Management is the basis of sustainable corporate management as Schweiter Technologies understands it. From the customers' point of view, the most important factor is certainly that 3A Composites products help make end users' applications more sustainable, e.g., by using fewer resources and less energy. Schweiter Technologies' businesses are therefore part of an economic chain that is designed for sustainability – and CleanTECH innovation is at the core of this business strategy (for more information see chapters "Leaders in innovation" and "Products with a sustainable impact"). Schweiter's CleanTECH approaches involve technology and product development teams from all business areas, in specific workstreams focused on energy efficiency, product improvement, circularity, and responsible supply chain; individual examples of CleanTECH initiatives and achievements are highlighted with green markers across the entire report).

Contribution to the UN SDGs

A milestone for Schweiter Technologies sustainability engagement was participating in the UN Global Compact in August 2024, which underlines the commitment to sustainability in general. This voluntary initiative aligns businesses around the world with Ten Principles in the areas of human rights, labor, environment, and anti-corruption, and supports broader UN goals, including the Sustainable Development Goals (SDGs).

By participating in the UN Global Compact, Schweiter Technologies pledges to:

1. Uphold human rights

Respect and support the protection of internationally proclaimed human rights, ensuring that Schweiter Technologies is not complicit in any human rights abuses.

2. Promote fair labor practices

Commit to upholding labor rights, eliminating forced and child labor, ensuring fair wages, promoting workplace diversity, and respecting workers' freedom of association.

3. Support environmental responsibility

Schweiter Technologies is dedicated to reducing environmental impact, promoting sustainable resource use, and encouraging innovation in environmental technology to combat climate change.

4. Combat corruption

Schweiter Technologies stands firm against all forms of corruption, including bribery and extortion, and promote transparency and accountability in all of our business dealings.

The approach to sustainability practiced by Schweiter Technologies is guided by the 17 United Nations' Sustainable Development Goals (SDG). According to Schweiter Technologies' and its operating 3A Composites businesses, the following SDGs are of particular importance in this respect:

Decent work and economic growth (SDG 8)

Schweiter Technologies strives for creating decent jobs in its global activities that comply with the principles of fair pay and respects labor rights. Thus, Schweiter Technologies takes the responsibility to contribute to the development of the respective local communities and economy.

Industry, innovation and infrastructure (SDG 9)

Schweiter Technologies wants to position itself as a pioneer in the development of sustainable products in its fields – including business areas providing infrastructural components and solutions. The company considers the sustainability of its products to be a primary objective that is an equal economic growth driver compared to technical characteristics and performance.

Responsible consumption and production (SDG 12)

Schweiter Technologies is active both in the cultivation of raw materials and in the processing of material from various sources. In both areas, the company strives for exemplary use of resources in the sense that the impact on the environment and society is minimized and resources are used and conserved responsibly, including through recycling.

Climate action (SDG 13)

Schweiter Technologies is committed to develop products that are not only functional, but also save energy and have a long service life thanks to their materials and design. The Group is aware that the sustainability of its products must be proven throughout their entire life cycle and considers this a lever on the way to a climate-friendly economy worldwide.

Life on land (SDG 15)

To a large extent, Schweiter Technologies is not just an industrial manufacturer, but also a forestry producer of raw materials, which entails a special responsibility to protect and use terrestrial ecosystems sustainably and halt biodiversity loss. In 3A Composites Core Materials plantations, the Group strives to make use of the ecosystem and natural resources in a responsible way.

In this context, the focus is on the five SDGs the company can implement most effectively:

Decent work and economic growth

Industry, innovation, and infrastructure

Responsible consumption and production

Climate action

Life on land

MATERIALITY

Schweiter Technologies conducted a materiality analysis in 2021 in line with the principles of double materiality. The starting point for this analysis was a list of topics derived from an analysis of comparable companies, internal sources (documents, guidelines, and directives), sustainability standards, and industry-specific information. Following comprehensive analysis, the most important topics were evaluated in a management workshop to establish their relevance to the business success of Schweiter Technologies and their impact on sustainable development. The process was supported by an external specialist and the result summarized in a matrix.

Schweiter Technologies reviews the validity of the material topics annually in advance of the reporting process. In 2024, the existing and thorough materiality matrix has been confirmed. The materiality matrix presents the 15 topics which are material for Schweiter Technologies. They form the core of this Sustainability Report.

MATERIALITY MATRIX

BUSINESS RELEVANCE

STAKEHOLDER MANAGEMENT

The establishment and maintenance of good relationships with various stakeholder groups is a key element in the business activities of Schweiter Technologies. The most important stakeholders are employees, customers, suppliers, and shareholders. Membership of associations is one aspect of stakeholder management, helping to promote the transfer of knowledge among other benefits.

To identify the most relevant stakeholder groups, Schweiter Technologies uses management reviews, SWOT analyses, and specific stakeholder identification processes. Schweiter Technologies remains in regular close contact with stakeholder groups in order to understand their needs. Direct contact with stakeholder groups is Schweiter Technologies' preferred form of communication. Regular contact with customers and suppliers together with staff dialog helps the company identify any risks at an early stage, respond to concerns, and anticipate potential change.

Schweiter Technologies' customers demand high-quality lightweight product solutions. Requirements relating to sustainability are becoming increasingly important. Trail-blazing technologies and reliable products help customers to develop their own sustainable processes.

Schweiter Technologies and its business areas are members of various associations. The focus of the memberships is on networking with other players in the industry and accessing information relevant to business development.

Focus areas	Membership associations examples
Materials	– European Aluminium Association (EAA) – European Coil Coating Association (ECCA) – European Chemical Industry Council (CEFIC) – American Composites Manufacturers Association (ACMA)
Aluminum, recycling, window and façade construction	– A U F e.V.
Construction	– German Sustainable Building Council (DGNB) – German Institute of Construction and Sustainability (IBU)
Economy	– Ecuadorian–Swiss Chamber of Commerce, Industry and Services – Greensboro Chamber of Commerce

Innovation and quality

INNOVATION LEADERSHIP

The development of efficient and resourcesaving solutions takes a high priority in research and development activities at Schweiter Technologies. Our innovations meet customer needs, save costs, and make a significant contribution to ecological sustainability.

Schweiter Technologies is actively driving innovation in Europe to enhance its unique selling propositions and distinguish its product range from competitors. In the 3A Composites Core Materials business area, as well as in the Display business in Europe, multiple products with increased recycled raw material content now complement the extensive offering. Globally, this commitment is also evident, and in North America, a new product range featuring increasingly sustainable solutions has been successfully launched.

In the 3A Composites Transport & Industry business area, the Group is engaged in international lightweight construction research and technology projects. A key focus of this research is on weight-saving composite patches for vehicle bodies. Among the latest innovations are cost-efficient underfloor heating systems for rail passenger vehicles, reflecting the Group's dedication to advanced, sustainable solutions.

Over the past two years, 3A Composites Europe has invested in five new production lines across various sites. By 2024, XL format sheet extrusion lines achieved targeted improvements in efficiency and product quality, thanks to advanced extruder, calander, and visual inspection technologies. Additionally, the DISPA® production line was enhanced with new embossing rollers, enabling the introduction of a 5 mm sheet thickness to further expand the product range.

Our innovations keep at the core of developing sustainable products. Schweiter Technologies can look back on a successful history as an innovation leader in the composites industry. Its products of the AIREX®, BALTEK®, ALUCOBOND®, DIBOND®, FOREX®, SMART-X®, and KAPA® lines are formidable innovative examples, essentially being based on an intelligent combination of materials (foams and composite materials). Efficient amalgamation of the individual raw and other materials yields optimized product characteristics – despite the reduced use of resources.

The Group leverages its expertise to drive further improvements that aim at reducing both Schweiter's as well as its customers' environmental impact (for more details see chapter "Products with a sustainable impact"). The research and development departments at Schweiter Technologies work continuously to improve technologies. Innovation is the key to opening new markets and reinforcing market differentiation.

Innovations: Product Portfolio Transformation

As a long-term technical leader in the composites industry and a key supplier to the wind energy sector, Schweiter Technologies and its business areas are leveraging their expertise to transform our product portfolio to reduce both the company's and customers' environmental impact.

Through innovation, emissions are reduced, resource usage is optimized, and technologies and processes are applied responsibly to support recycling and circularity.

The CleanTECH approach engages technology and product development teams from all business areas in dedicated workstreams focused on energy efficiency, product improvement, circularity, and responsible supply chain management. Clean technology offers significant potential for reducing environmental impact, though prioritizing these opportunities can be challenging. Industry association memberships and discussions with key customers have been leveraged to identify areas where technical advancements can deliver the greatest sustainability impact for both Schweiter Technologies and its clients. A comprehensive double materiality analysis could further refine strategic pillars and future KPIs in 2025.

CleanTECH innovations at a glance:

• FIVE-DOT-MISSION update to 2.0, with more focus on LCA and product carbon footprint
• By 2030, 3A Composites Display & Industry Europe aim at producing 80% of products within score 7 of the FIVE-DOT-MISSION
• Implementing ISO 9001, 14001 and 45001 certifications for all sites
• Recycling Concept Aluminium Composites Germany
• LCI followed by LCA assessments for all products of 3A Composites Europe.
• Comprehensive road map for the 3A Composites Display, Architecture & Industry product portfolio with more recycled material. The so-called RE product line
• 3A Composites International is a member of Operation Clean Sweep
• EcoVadis site assessments for all European sites and global 3A Composites Core Materials sites.
• Relocation of production line from Glasgow to Kentucky, US, for significant reduction in upstream Scope 3 emissions.
• Recycling of acrylic glas with one of 3A Composites Industry Europe's key accounts.
• Leading European manufacturers of coaches and buses are using selected body components from 3A Composites in the construction of the next generation of their efficient buses
• 3A Composites Core Materials not only harvest balsa trees, but also plant about 2.5 million new trees per year.
• For the production of wind blades, lightweight, high rigidity core materials support the mechanical properties and have a positive effect on energy efficiency and wear.

Additional examples of Schweiter Technologies' CleanTECH initiatives aimed at reducing environmental impact can be found in this report, highlighted with a green marker.

PRODUCTS WITH A SUSTAINABLE IMPACT

Schweiter Technologies aims to reduce its ecological footprint. The selection of materials is a key factor in this: The Group considers it particularly important for products to contain a high proportion of reused, recycled and naturally renewable raw materials. At the same time, Schweiter products support the efforts of customers to achieve their own sustainability goals.

The stakeholders' increased awareness of sustainability matters provides a great opportunity for the Group since its main product sales arguments include reducing the environmental footprint of customers' applications. The provision of components with a small ecological footprint improves the overall ecological performance of devices, instruments and customer solutions. Additionally, lightweight Schweiter products in mobility applications promote energy savings during their use phase, which is an important sales argument both ecologically and economically. Further, some products of the Group contribute to competitive renewable energy production.

Schweiter Technologies uses its industry association memberships and discussions with key customers to identify the most promising technical advancements to promote sustainability for both Schweiter Technologies and its clients. Expanding the range of more sustainable products in its portfolio is playing a significant part in reducing Schweiter Technologies' own ecological footprint. As Schweiter Technologies processes large quantities of aluminum and synthetic materials, the optimized use of materials is a key area of development.

Products with a reduced CO2 footprint

Customers increasingly request information on sustainability issues related to products and processes. They are interested in the ecological footprint and the share of recycled materials contained in the products and are increasingly obliged to provide supplier verification resulting from national and international legal regulations themselves. To obtain comparable and standardized data records, individual individual business areas have purchased Life Cycle Assessment (LCA) software licenses and are working with external experts on life cycle analyses. In particular, all products of 3A Composites Europe are subject to Life Cycle Inventory data evaluation and subsequent LCAs. These are used to provide customers with information to guide their purchasing decisions. Products are often in use for decades, which is why it is worth calculating and factoring in costs and environmental impact across the entire life cycle. Evaluating the environmental performance of products according to Schweiter Technologies' FIVE-DOT-MISSIONTM supports sales by providing product declaration in a transparent and structured manner.

Schweiter Technologies can reduce the CO2 footprint of specific products by developing products from recycled materials. For example, the products used in the manufacture of wind turbine blades offer a particularly low carbon footprint as AIREX® and BALTEK® products are among the best in the industry according to certified Environmental Product Declarations (EPDs), particularly so for BALTEK® components, featuring a negative carbon footprint. In 2024, the Group achieved several advancements in promoting the ecological performance of its products, for example:

• The sourcing of recycled raw materials for AIREX® PET was significantly increased during the reporting year and R&D was strongly geared towards qualification of new sources of recycled raw materials. The manufacturing units aim at using polyethylene terephthalate (PET) exclusively from recycled raw materials.
• In a cooperation with one of 3A Composites Transport & Industry's key clients, a recycling process for acrylic glass was established, yielding recycled raw materials.
• In Germany, production sites have developed a recycling concept for aluminum, which is expected to add value in the future.
• The 3A Composites Display, Architecture and Transport & Industry's business areas have created a comprehensive road map to offer a product portfolio with more recycled materials: the so-called RE product line.

Meanwhile, the focus has broadened to more frequently include the testing of organic materials, such as natural fibers and wood. In support of this, Schweiter Technologies has submitted a project in Switzerland for biomaterials and is currently working to improve the ecological footprint of used materials. Schweiter Technologies has also invested in expanding its portfolio of paperbased products.

In the European Display and Transport & Industry's business areas, the focus in 2024 has been on increasing the recycled content in products. DISPA®re, composed of fully recycled paper layers, was presented on the FESPA trade show early in 2024. The customers now have the choice to select from 100% virgin fiber or 100% recycled paper-based DISPA® for their campaigns. The latest product development was the next generation of PVC foam boards, FOREX®re and FOAMALITE®re, with 30% post-industrial and post-consumer white polyvinyl chloride (PVC) foam waste, including digital print cut-offs. In addition, this product platform exhibits key elements for a circular economy of printed PVC sheet waste for Schweiter Technologies' customers and the printing industry.

To quantify improvements in achieved product carbon footprints (PCFs), the sites of the European 3A Composites business areas have started to prepare LCAs of their products using the commercial tool of Ecochain Technologies B.V. PCFs are communicated to interested customers to help them make smart choices to achieve their sustainability ambitions. In the 3A Composites Architecture Europe business area, carbon footprint documentation has been updated with new EPD's for ALUCOBOND® PLUS and ALUCOBOND® A2. The focus in this business area increasingly is on offering novel products containing layers produced with a high share of recycled aluminum, featuring a PCF reduced by more than 30%.

Considering their large potential to reduce product CO2 footprints, Schweiter Technologies closely cooperates with suppliers to access new and secure existing sources of recycled raw materials, particularly in the 3A Composites Core Materials business area. Common projects promote the collection of residual materials and waste to support the circular economy.

Products as climate transition enablers

3A Composites Core Materials can supply the wind power industry with lightweight core material solutions made from balsa or polyethylene terephthalate (PET). For example, lightweight, high stiffness components support the mechanical properties in the manufacture of wind blades and positively affect energy efficiency and wear. Additionally, 3A Composites Transport & Industry components in vehicles can cut fuel consumption in the air, rail and marine transport sectors through weight reduction. long service life of 3A Composites products is also key to sustainability. For example, not only are ALUCOBOND® aluminum façades 100% recyclable and returnable to the aluminum cycle, but they are often in use for some 40 years. Due to their highly effective insulating properties and low maintenance and service costs compared to conventional solutions such as brickwork, these products help to save energy and reduce CO2 emissions.

In Europe, the 3A Composites Transport & Industry business area is focusing on lightweight designs to meet standards and market requirements. Lightweight construction is integral to their business philosophy and design principles. Where possible, locally sourced aluminum with a high recycled content and core materials of low ecological harm such as chlorofluorocarbon (CFC)-free foams, recycled PET, and natural fillers are prioritized. 3A Composites Transport & Industry developed a floor panel containing, beside PET, an organic material-based core material. Initial trials have been conducted using structural adhesive systems without harmful elements.

Continuous challenges

While Schweiter Technologies has made significant strides in sustainable product innovation, the development and production of more sustainable products requires further efforts. Technical challenges require considerable research and development efforts to unlock the potentials of using higher shares of recycled raw materials without compromising product quality. For specific materials in our portfolio, we are proactively exploring recycling options and alternative raw materials to ensure compliance with newly applicable technical standards and regulations. The risks related to such regulatory changes are strategically assessed on a Group-wide basis to provide all units with timely notice. This enables the generation of forward-looking mitigation concepts and measures, which are largely handled on the level of 3A Composites business areas or individual locations.

PRODUCT QUALITY AND COMPLIANCE

Products from Schweiter Technologies are used in demanding applications. In addition to a competitive price, product quality is crucial for market success, both with existing customers and when acquiring new customers.

First-class product quality is an excellent means of differentiating 3A Composites' product range from the competition and can further enhance Schweiter Technologies' business brands reputation. In short, reliable quality is one of the most important criteria in calls for tender. Thus, high quality and compliance with contractual requirements must be maintained consistently, otherwise the reputation of the product brands could be put at risk. An additional argument is the operational safety and extended service life of the high-quality products Schweiter Technologies offers.

Global approach

To ensure consistently high-quality performance, Schweiter Technologies focuses on the prevention of quality issues through certification of their business areas with internationally recognized quality management systems (for more information see table p. 41) as well as systematic monitoring, controls and assessments.

Almost all of Schweiter Technologies' production locations implement the ISO 9001 quality management system (22 out of 26 sites). In the mobility sector, quality standards are a fundamental prerequisite for the supply of components. The international railway industry standards (IRIS/ ISO/TS 22163) applied at the 3A Composites Transport & Industry sites in Altenrhein, Switzerland, and Mielec, Poland, have a key role in the European passenger transport sector. As concerns the automotive sector, IATF 16949 provides the basic guidelines at the Osnabrück site in Germany. In the mid-term, Schweiter aims to certify all production sites according to ISO 9001. Annual audits by external bodies ensure continuous alignment with the most recent regulations and uphold the certified status of the sites – enabling unproblematic recertification every third year. Furthermore, 3A Composites Core Materials has adopted Advanced Product Quality Planning (APQP4) with internal specialists to fulfill the strict requirements in the wind energy industry.

Technical data sheets record all aspects of product quality along with testing standards. Quality measurements are recorded and filed and any deviations in product quality are systematically investigated, documented, and rectified. Schweiter Technologies has a structured complaints management system in place that is fed back to production and development, so that quality standards can be maintained, and any risks can be minimized in the short term. Quality checks include quality assurance for product samples; the products are tested for compliance with specifications and safety standards. Customers are provided with information on the correct safe handling and processing of products.

There were no infringements concerning quality-related effects of products and services on the health and safety of customers during the reporting year.

Regional requirements as a challenge

3A Composites products must meet the standards and requirements of the large number of countries, regions and business areas in which Schweiter Technologies operates. This is a considerable challenge and poses the risks of local regulatory non-compliance as well as customer dissatisfaction.

One very prominent example is fire safety of façade materials. Concerning this fundamentally relevant issue in the 3A Composites Architecture business area, the regulations are being tightened rather frequently. For example, the EN 13501-1 standard, which sets out fire performance classifications for construction products, has seen multiple updates within the past two decades to improve fire safety in building materials and design. This standard is primarily used in the European Union and in countries that follow European standards. Globally, there is no single set of regulations; instead, each country formulates its own requirements. Naturally, the aim at Schweiter Technologies is to satisfy all regulations with each façade product such as ALUCOBOND® in every country of installation.

The responsibility for maintaining quality standards and norms lies with the individual production sites. Product certifications are a key element in this respect. In Germany and France, Schweiter Technologies has obtained licenses for product sales. Besides, Alucobond® products receive fire certifications to launch them on the market. The product management team and local research and development departments ensure that the respective standardization processes are complied with.

"FIVE-DOT-MISSION"

MINIMIZING OUR ECOLOGICAL FOOTPRINT IN ALL AREAS AND ALONG THE ENTIRE VALUE CHAIN.

To fulfill its product sustainability pledge effectively, 3A Composites Display and Transport & Industry Europe has devised a "FIVE-DOT-MIS-SION". It characterizes products regarding the use of materials, the recycled resource content, the carbon footprint, the product life cycle, and recyclability, and awards points for each category. The total score is displayed in the form of a colored dot. A maximum of three points can be awarded in each of the five categories. In 2024, the FIVE-DOT-MISSION was updated with a stronger focus on Life Cycle Assessments and Product Carbon Footprints (PCFs). This concept is to be extended to further business areas and regions in the short and medium term.

The "FIVE-DOT" score illustrates product features that are strong indices of their total environmental impact. Schweiter Technologies has recently been able to improve specific sustainability aspects of certain products and has set Group-wide targets for the carbon footprint of all products as well as their compatibility with the principles of a circular economy.

Bio-based content

We look at the percentage of renewable raw materials used in our products. Our aim is to increase the percentage.

Recycled content

This category is where we gauge the proportion of high quality recycled raw material in our products' total material input.

CO2 footprint

In this category we monitor the kg CO2 eq/kg per product which is released into the environment during manufacture.

Product life

In this category we show our panels' average service life. Life cycles can range from approximately 1 year to more than 30 years depending on the different materials.

Recyclability

One of the most important aspects of sustainability is contributing to environmental protection by cutting down use of valuable raw materials, conserving resources and avoiding waste. There are already established recycling loops for various products. At some production sites, the material can be returned for reuse and recycling. We are actively working with partner companies to establish sustainable and future-oriented recycling solutions for closed-loop recycling management.

Engineers are working hard on developing new products and product improvements, including conducting product life cycle analyses. The overall FIVE-DOT score (max. 15 points) provides customers with a transparent decision-making aid to choose the desired supplies, as well as to assess improvements of the sustainability performance of their own products and applications when using a specific component from 3A Composites. Providing customers with a good understanding of the sustainability performance of 3A Composites products is an important strategic pillar for promoting Schweiter Technologies' market position – and ultimately securing continuous and increasing business success.

At the same time, the FIVE-DOT score provides the business areas' product management with the valuable information required to target further improvements or trigger the search for a more sustainable production process. 3A Composites Europe has set a goal to achieve 80% of the revenue from products that attain a score of ≥7 in the FIVE-DOT classification by 2028.

Environmental protection and resource efficiency

ENVIRONMENTAL COMPLIANCE AND MANAGEMENT SYSTEM

Environmental management systems help Schweiter Technologies to record its processes systematically, extract data, and optimize production. They are key to ensure compliance with guidelines and laws and guarantee exercising environmental due diligence in line with Schweiter Technologies' responsibility.

Schweiter Technologies as a global and decentrally organized group does not prescribe a company-specific management system. In contrast, the Group largely provides their business areas with flexibility for regionally optimized management approaches. To ensure some Group-wide harmonization and standards, Schweiter has its business areas certified according to internationally recognized management systems. Production locations each have their own environment managers responsible for the implementation and monitoring of the standardized processes. This helps to guarantee reproducible high-quality work and improve management efficiency through structured procedures. Thus, certifications are a simple and comprehensible way to ensure regulatory compliance, transparent information, and high environmental standards and to identify risks at an early stage. Increasingly, this is also what customers are expecting.

Management systems and certification as a requirement

To date, the majority of plants are certified in accordance with current management systems. These include standards for environmental, energy and quality management as well as for occupational health and safety. At the end of the reporting year, three additional sites – resulting in a total of 21 out of 26 – were certified with the environmental management system in accordance with ISO 14001. Among other specifications, quality management systems include process efficiency and waste reduction guidelines – and thus indirectly also contribute to improvements of environmental performance. Compliant processes are mainly ensured by adherence to ISO 9001, the international railway industry standards (IRIS/ISO/TS 22163), as well as certification with ISO/TS 16949, relating to the automotive sector.

At the end of the reporting year, Forest Stewardship Council (FSC) management systems apply to four sites including the balsa wood plantations in Ecuador and Papua New Guinea. Re-certification has been conducted on a regular basis since then. This is fundamental to convince stakeholders of the environmental compatibility of obtained raw materials.

In the mid-term, Schweiter aims to certify all production sites in accordance with ISO 14001. Annual audits by external bodies ensure continuous alignment with the most recent regulations and uphold the certified status of the sites – enabling unproblematic recertification every third year.

Key certifications

Number of sites1
21/26
19/26
23/26
4/4
2/2
1/1

¹ Depending on the respective business models, some management systems are only applicable to few of the total of 26 sites with manufacturing operations.

Chemicals management and legal requirements

For Schweiter Technologies, the European REACH regulation (Registration, Evaluation, Authorization and Restriction of Chemicals) is of particular relevance to product manufacturing. As sophisticated chemicals are used in some manufacturing processes, compliance with REACH is essential. Misconduct could lead to legal consequences or loss of reputation and consequently a market disadvantage of 3A Composites products.

Chemical management is organized with local responsibility by the local EHS or site managers, supported by R&D experts, often chemists or chemical engineers. The business areas have established local inventories of all chemicals and harmful substances as well as the required documentation, safety datasheets and work instructions based on risk assessments – to comply with the national chemical legislation frameworks, e.g., the REACH regulation for the European manufacturing sites. Risks of storage and handling of chemicals are monitored. All employees in production or otherwise involved in the handling of chemicals are regularly trained in standard procedures and hazardous situations. Annual instructions of all employees are documented.

Precursor chemicals used in the manufacturing process, e.g., polymeric resins, adhesives, lacquer systems and processing additives or pigments, are converted into inert and harmless synthetic products. Solvents are typically evaporated in the manufacturing process and removed with RTO or filter systems. Powdery filler materials, pigments and UV stabilizer substances are bound in the polymeric matrix of synthetic products, coatings or binders. Substances of very high concern are neither used nor intentionally added during the manufacturing processes and do not exceed threshold levels of 0.1% or 0.01% respectively in the final product. Conformity with e.g., the European REACH regulation and RoHS (Restriction of Hazardous Substances in Electrical and Electronic Equipment) rules is declared for the products of the European 3A Composites business areas. Other substances of concern can be present in the products in concentrations low enough that a declaration in safety datasheets according to the Global Harmonized System (GHS) is not required or applicable.

Targets are defined to minimize use, handling and waste of hazardous or toxic chemicals, also called substances of concern (SOC). Substances of high concern like SVHC, CMR, PBT or endocrine disruptors, are avoided or replaced wherever possible. Based on annual reviews, projects are defined to replace SOC with less harmful chemicals. Furthermore, avoidance of critical substances (SOC) is a key element in the development of new products.

ENERGY AND GREENHOUSE GAS EMISSIONS

As a provider of solutions benefiting climate transition, Schweiter Technologies contributes to emissions reduction of its customers (see chapter "Products with a sustainable impact"). This chapter covers the Group's own greenhouse gas emissions and its mitigation approach to assume its climate protection responsibility. Energy use is typically the source of CO2 emissions – varying in quantity depending on the energy carrier consumed. Schweiter's commitment to climate change prevention, or otherwise minimization, mitigation and remediation is set out in the overarching principles stated in the corporate Code of Conduct.

Schweiter Technologies aims to reduce its climate impact through reducing energy consumption as well as transitioning to renewable energy carriers. Apart from embracing responsibility to protect the environment, financial motivators have been considerable increases in energy prices in Europe in 2023, the uncertainty of global developments in the short and medium term, as well as risks due to rising CO2 prices. To address and coordinate the necessary transition, Schweiter has set up a task force in 2023, aimed at systematically identifying and realizing energy saving and emissions reduction opportunities. Furthermore, the Group expects progress from ISO 41001 and 50001 certifications (for further information see chapter "Environmental compliance and management system"), which prescribe framework conditions for the handling of energy and environmental management in general.

Dependency on fossil energy carriers

3A Composites operations are spread across the globe. At many sites, the energy market does not provide suitable alternatives to fossil-based power. Moreover, Schweiter Technologies cannot count on the reliable supply of environmentally harmless energy at all locations. Energy grids that are heavily eschewed towards hydropower are vulnerable to climate change and the effects of droughts. This led to increased grid emission factors in some 3A Composites locations as fossil fuels were more frequently used as energy carriers for electricity production. Additionally, many 3A Composites sites installed diesel generators to bridge energy outages and keep operations stable when necessary.

Furthermore, some products can currently only be manufactured at a reasonable cost if the required heat is produced with natural gas. For example, 3A Composites Core Materials entities rely on both gas and electricity to operate energy-intense production processes such as extrusion, where heating of input materials is required. At present, it is thus not possible to avoid the use of natural gas in many production processes. The dependency on natural gas poses a regulatory as well as a reputational risk for Schweiter Technologies and is in contradiction to a stronger commitment to reducing greenhouse gas emissions.

Another climate impact which is difficult to avoid originates in the manufacture of foams as this requires propellants. These readily evaporate, causing emissions of volatile organic compounds (VOCs), which themselves can be strong greenhouse gases.

Awareness of the corporate CO2 footprint

Schweiter Technologies is striving to reduce its CO2 footprint. The Sustainability Board works with the business areas to identify and prioritize initiatives and to coordinate and manage the individual emissions mitigation projects. The main levers are reducing energy consumption and switching to low-emission energy carriers.

The Group Sustainability Director yearly delegates the collection of information on emissions to selected data owners per business area. The consumption data are consolidated, and emissions calculated to provide the management with a picture of the Group's performance and potential need or scope for action.

Schweiter Technologies continues to work in improving the baseline information for its energy consumption and the related emissions in Scopes 1 and 2. For example, the production sites in Europe currently evaluate their energy consumption every month. In recent years, the quality of data has significantly improved despite the complex and decentralized structure of Schweiter Technologies. In the reporting year, Schweiter Technologies has undertaken great effort to evaluate the applicability of a digital data platform to simplify the data collection and to ensure further improvements in quality – fundamental requirements to closely track achievements and set meaningful and realistic emissions reduction targets.

Key figures: energy and emissions¹

	2024²	20233
ENERGY
Energy consumption (total) in MWh	338 190	328 458
Of which renewable	50 365	56 452
Electricity	159 454	155 651
Total renewable electricity	49 259	56 736
Heating	164 296	160 629
Natural gas	159 204	152 960
Heating oil	641	532
District heating/steam	4 450	7 137
Fuels	14 440	12 178
Diesel	9 490	8 536
Petrol and LPG	4 951	3 642
Greenhouse gas emissions4 (total) in t CO2e	87 935	82 803
Scope 1	33 067	31 347
Natural gas	29 375	28 223
Heating oil	161	134
Diesel	2 388	2 148
Petrol and LPG	1 142	842
Scope 2	54 869	51 457
Electricity5	54 069	50 174
District heating/steam	800	1 283

Basis for data and calculations

• ¹ The environmental figures cover all manufacturing companies in the Schweiter Technologies Group. The newly acquired sites JMB Budno, Poland and JMB Palhaca, Portugal were excluded due to insufficient data quality. Distribution companies and the headquarters in Steinhausen are not included because of their relatively low environmental impact. Sites acquired or closed within the business year are not included.
• ² For the 2024 business year, figures for consumption were collected for the first three quarters and a projection calculated for the full year.
• ³ For the 2023 business year, environment figures were reassessed using full-year data sets, which benefit from improved data accuracy and availability.
• 4 The greenhouse gas inventory was calculated in line with WRI/WBCSD Greenhouse Gas Protocol guidelines. Scope 1: emissions from combustibles and fuels. Scope 2: emissions arising from the production of electricity and district heating purchased by the companies. Emissions factors used: current versions of IEA and DEFRA.
• ⁵ The greenhouse gas emissions associated with energy production were reported in line with the location-based approach and in accordance with the Greenhouse Gas Protocol Scope 2 standard. The IEA emissions factors were appended with corrections as a result of energy trading (imports/exports) in order to give a more accurate presentation of the emissions actually caused.

Focus on more renewable electricity

The main realistic emissions mitigation approach for Schweiter Technologies is a transition to renewable electricity. In Switzerland for example, the consumed electricity at the production sites is hydropower exclusively. Several other locations of 3A Composites also already consume renewable electricity such as solar, hydro and wind energy, while others are currently transitioning to low-emission technologies. However, not all production sites have access to a grid fulfilling their requirements with low-emission power. Where possible, 3A Composites business areas overcome this limitation by building their own photovoltaic systems. As a side effect, the locations producing solar power build resilience to fluctuation in energy prices.

Road towards decarbonisation

Schweiter Technologies owns plantations to grow balsa wood required in the manufacture of core materials, planting about 2.5 million trees per year. The Group has made progress in quantifying carbon capture from commercial plantations and conservation areas in Ecuador. Whenever the biomass removal in such an area is lower than the regrowth rate, it can be determined that a carbon sink is generated. The CO2 removals from commercial plantations have been externally verified before 2021. This shows the potential to compensate for emitted greenhouse gases within Schweiter Technologies' own boundaries to eventually reach net zero emissions. The Group continuously studies the applicability of the carbon sink – developing a meaningful characterization and methodology for its implementation in accounting.

RESOURCE-EFFICIENT PRODUCTION AND USE OF MATERIALS

Material-economic production processes and recycling form the basis of material efficiency. Schweiter Technologies is highly committed to reducing the consumption of raw materials while manufacturing products of the highest quality. This not only preserves natural resources, but reduces operational expenditures – to the benefit of both the environment and customers.

The responsible use of resources, raw materials, and energy is a decisive factor in progressing towards more sustainable operation at Schweiter Technologies. The Group largely uses raw materials (aluminum, synthetic materials, and paper-based raw materials) that are compatible with the principles of a circular economy. 3A Composites brands stand for the development of innovative products with a high recycling ratio and the use of bio-based products. All business areas are working on improvements of material efficiency, size optimization, options for reuse and recycling, and the selection of source materials with a high rate of recycled content. Schweiter Technologies' global and decentralized structure allows regional proximity to suppliers and customers to avoid long transport distances – promoting energy efficiency also in this perspective. Delivery routes are continuously optimized. For example, where possible, aluminum is not obtained from the Far East, but from nearby sources.

Economic challenges

Because resource efficiency is closely linked to cost efficiency, the subject has already garnered significant attention. Increasing energy and material efficiency in manufacturing process reduces expenditure and improves resilience in procurement. The comprehensive utilization of materials also results in lower costs for waste disposal.

In the reporting year, fluctuating energy prices and the volatile cost of materials posed risks for the Group's profitability. To build resilience, Schweiter Technologies relies on agility in the supply chain and maintains a comprehensive global network of suppliers. Furthermore, Schweiter Technologies strives for increased resource efficiency in its manufacturing processes. However, reducing material input can pose a challenge to maintain product performance and quality at a high standard. This requires great efforts – e.g., in the 3A Composites Core Materials business area, research and development teams are working continuously to optimize combinations of quality and properties to make polyethylene terephthalate (PET) and balsa wood products even more lightweight and sustainable. PET foams have been developed to absorb substantially less resin when processed into composite material components by the customer, thus preventing excessive consumption of materials and saving on the total cost of ownership.

Responsible resource use

Schweiter Technologies trusts in certification when it comes to management of resource consumption at the individual locations. In 2024, 21 out of 26 production sites have operated in accordance with ISO 14001 (for more information see chapter "Environmental compliance and management system").

Most 3A Composites plants use enterprise resource planning systems to track key performance indicators such as ground material rates, production yield, energy use, and water consumption. By comparing resource inputs against production targets, managers can estimate the individual sites' performance regarding material efficiency.

Waste

At Schweiter Technologies, waste management is entirely a responsibility of the 3A Composites business areas and sites, respectively – and the overarching principles are derived from the corporate Code of Conduct. As an effect, the business areas continuously work on optimizing manufacturing processes to reduce waste and reuse residual materials.

Upon request of the Global Sustainability Director, each location regularly evaluates the quantity of waste generated, divided into hazardous and non-hazardous substances, whereby an additional distinction is made between waste treatment methods. The locations further track the costs of processing or disposing of the waste to assess the economic effect of waste reduction progress. Returning used materials to the production process can further lead to cost savings for resource inputs. 3A Composites European production sites even monitor their use of materials, process efficiency, and specific rates of waste on a monthly basis.

Recent years' data reveal that the business areas' priorities in waste management are avoiding waste generation, promoting reuse and recycling as well as minimizing landfilling of hazardous waste (<1% over the past three years). According to a full year projection of waste figures for Q1-Q3 2024, the downward trend of total waste generation observed for the past years (2022 to 2023: –2 436 tons, excl. separately disclosed biomass) appears to be temporarily halted due to improved data availability. This also slows the increase in the recycling rate (2022: 33.0%, 2023: 38.2%, 2024: 35.2%).

Individual 3A Composites site's concepts include reducing and recycling packaging, where possible, as well as avoiding single-use materials. In the 3A Transport & Industry business area, for example, any used metals are fully recycled and an isocyanate recycling scheme is maintained with suppliers of polyurethane adhesives. In Poland, 3A Transport & Industry operates a closed molding process and water-based coating systems that provide better process efficiencies than their predecessors. 3A Composites Core Materials internally recycles foam parts and upcycles PET into new products. Further, the site in Ecuador links resource and energy efficiency by using large quantities of waste as a source for heat generation (e.g., biomass such as saw dust from production processes; Plantabal: 6 136 tons, Kokopo: +6113 tons). 3A Composites sites continuously aim to develop production processes that allow the return of cut-offs as well as scrap and surplus products to the material cycle.

Wherever recycling is not an option, the business areas send waste to incineration facilities to avoid landfilling. An eminent exception is biomass from cut-offs and scrap material from balsa wood production in the 3A Composites Core Materials business area, which is partially composted in the fields surrounding the Kokopo site in Papua New Guinea (4 075 tons) and the Plantabal site in Ecuador (11 314 tons)

Key figures: waste management1

	20242	20233
Waste (total) in t	17 847	16 653
Commercial waste	17 031	15 874
Incineration4	2 958	2 229
Landfill5	7 420	7 557
Recycling	6 653	6 088
Hazardous waste	817	779
Incineration	626	482
Landfill	8	23
Recycling	183	274

Basis for data and calculations

• ¹ The environmental figures cover all manufacturing companies in the Schweiter Technologies Group. The newly acquired sites JMB Budno, Poland and JMB Palhaca, Portugal were excluded due to insufficient data quality. Distribution companies and the headquarters in Steinhausen are not included because of their relatively low environmental impact. Sites acquired or closed within the business year are not included.
• ² For the 2024 business year, figures for waste were collected for the first three quarters and a projection calculated for the full year. Likely, 2024 values are overestimated.
• ³ For the 2023 business year, figures for waste were reassessed using full-year data sets, which benefit from improved data accuracy and availability.
• ⁴ At the Kokopo and Plantabal sites, there was additional organic production waste amounting to 14'287 t (2024) and 25'590 t (2023) which was incinerated on site as biogenic heating fuels.
• ⁵ At the Kokopo and Plantabal sites, there was additional organic production waste amounting to 16748 t (2024) and 28'760 t (2023) which was used as biodegradable soil amendment by on-site landfilling.

Social responsibility

OCCUPATIONAL HEALTH AND SAFETY

The health and safety of employees is a top priority for Schweiter Technologies. The commitment to occupational health and safety is accordingly high, with the production plants as the focal points. External and internal safety audits together with appropriate training help provide a safe working environment and minimize absenteeism.

One of Schweiter Technologies' fundamental values is to uphold the highest standards of health and safety. Therefore, responsibility for the health and safety strategy lies at the highest management level: at the Board of Directors. The Group's promotion of occupational health and safety focuses on employees working in raw material production and processing facilities, where they may be handling challenging materials and operating plant machinery.

Schweiter Technologies' main health and safety concepts are:

• ensure high, internationally recognized standards across the production facilities through certification and regular checks and audits
• prevent injuries and occupational illness through regular occupational health examinations, the provision of protective equipment and access to health promotion measures
• provide a sound and state-of-the-art working environment: clear regulation of intensity and hours of work and focus on a healthy working environment through appropriate health protection and occupational safety measures
• improve response capability through an emergency response plan and systematic prevention
• provide information through awareness training and communications via various channels

Schweiter Technologies aims at an impeccably safe working environment, which entails zero accidents. Striving towards this goal, health and safety is anchored as an important part of the corporate culture. The Group-wide incentive policy for all employees (for further information, see chapter "Attractive employer"), industrial as well as office staff, thus consists of one part linked to health and safety objectives. The business areas are flexible in disbursing bonus payments of up to ±10% for achieving objectives.

Certification

For a globally active and decentrally managed company such as Schweiter Technologies, the establishment of reliable standards throughout the entire corporate structure is of paramount importance for the prevention of grievances. Thus, the Group strives towards full certification coverage of its production sites with the internationally recognized occupational health and safety management system ISO 45001. At the end of 2024, 19 out of 26 sites operate according to this standard (see table of certifications in the section "Environmental compliance and management system"). Annual audits by external bodies ensure continuous alignment with the most recent regulations and uphold the certified status of the sites – enabling unproblematic recertification every third year.

Comprehensive training

Information about, and active participation in, safety training is important for raising the profile of health and safety. Schweiter Technologies therefore organizes frequent safety courses and meetings for all employees and prioritizes the transparent dissemination of up-to-date information. Both managers and employees carry out safety checks as part of their work routine. In addition, site management evaluates health and safety performance against targets on a monthly basis and decides on corrective action.

Safety training is mandatory for new employees and forms a part of the induction program in all manufacturing sites and offices. The safety training covers a wide range of topics, including courses on the disposal of hazardous waste, leaks, fire prevention, the handling of dangerous chemicals, safe operation of specialist equipment, and safety risks in the workplace. Managers receive additional targeted information on the topic of safety.

In some 3A Composites business areas, a special National Safety Week or Safety Day allows employees and managers to exchange views and experiences regarding health and safety topics during training courses or workshops. Over the year, clear information on safety issues has been shared across the entire company to raise awareness among employees.

Health & Safety management at site level

The site managers are responsible for safety at each location. They are supported by Environment, Health & Safety (EHS) Managers who lead, coordinate, and check compliance with programs and measures on site. Schweiter Technologies has procedures for hazard detection and risk assessment in place, and all employees must participate in the risk assessment procedures. The aim is to identify and contain risks relating to working procedures, equipment, machinery, as well as the storage and handling of hazardous substances such as highly flammable petroleum compounds.

All employees together are responsible for preventing accidents and harm to health within their scope of responsibility. Inappropriate behavior and negligence when handling hazardous substances and operating machinery may lead to dangerous situations. Schweiter Technologies has developed location-specific safety management guidelines, protocols, procedures, and programs designed to minimize accidents, raise employees' awareness of health and safety issues at work, at home, and during leisure time, and to communicate the Group's expectations of every employee. Technical or organizational measures to reduce chemicals exposure are in place and appropriate personnel protective equipment is mandatory. For example, products containing potentially dangerous substances are clearly labeled according to law. Precursor chemicals considered Substances of Concern (SOCs) used in the manufacturing process, e.g., polymeric resins, adhesives, lacquer systems and processing additives or pigments, are converted into inert and harmless synthetic products that are safe to handle. Substances of Very High Concern (SVHCs) are neither used nor intentionally added during the manufacturing processes.

The sites of the business areas have precautions in place to avoid unhealthy concentrations of solvent vapors, for example from foaming agents, and dust particles from cutting, milling, or drilling processes of wood, paper, foam or composite materials. Measurements to track compliance with Occupational Exposure Limits (OELs) are carried out where necessary to protect the workforce. Concentrations above certain thresholds would be a health threat to employees and non-compliant with legislation and certified standards.

Alarm plans and risk assessments are regularly updated by local EHS teams. This includes more general subjects like fire prevention and fire drills or the handling of potentially dangerous tools, or specific procedures e.g., regarding wearing of personal protective equipment (PPE), working at height, working with electrical equipment, working with cranes and suspended loads and so forth. The respective trainings and refreshments are mandatory at sites of Schweiter Technologies, particularly at the production sites involved in forestry and extrusion. The right to reject dangerous work is also guaranteed.

If a work-related illness or incident occurs in spite of all precautions, training, and risk management strategies, site management is notified, along with the nature of the injury, its primary cause, and its effects. An investigation is carried out following each accident and incident, enabling Schweiter Technologies to create action plans to reduce future hazards. Internal audit checks and evaluations of the relevant accident figures like lost time injuries and illness rates are performed on a regular basis. According to the outcomes, preventive measures are prepared and implemented under the responsibility of the local EHS management.

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Key figures: occupational safety1

	2024²	20233
Number of employees covered by a management system for occupational safety and health	3 927.4	3 942.43
Number of occupational accidents4	28	37
Absences due to occupational accidents (days)4	329.6	775.0

Basis for data and calculations

• ¹ The occupetaional health and safety figures cover all manufacturing companies in the Schweiter Technologies Group. The newly acquired sites JMB Budno, Poland and JMB Palhaca, Portugal were excluded due to insufficient data quality. Distribution companies and the headquarters in Steinhausen are not included because of their relatively low environmental impact. Sites acquired or closed within the business year are not included.
• ² For the 2024 business year, figures were collected for the first three quarters and a projection calculated for the full year. The aquisition of JMB Wind Engineering contributed a significant number of additional accidents (10 accidents in 9 months) compared to the previous year.
• ³ For the 2023 business year, occupational health and safety figures were reassessed using full-year data sets, which benefit from improved data accuracy and availability.
• 4 Only occupational accidents resulting in at least three full day's absence were taken into account in 2024 (at least one full day's absence in 2023).

Non-compensation health benefits

Employees at Schweiter Technologies have access to a wide range of occupational health services, including health promotion schemes for the most part. These vary depending on the business area and location and may, for example, include health check-ups at the workplace, free inoculations, health advice, financial incentives for sporting activities, financial support for private medical care or access to company doctors or telemedicine services. In Germany, the employees can participate in fitness programs organized by an external provider or join the internal sports group. In the 3A Composites Core Materials business area, where balance pads and gymnastic mats are manufactured, employees are invited to participate in short daily gymnastics programs. Other business areas also organize weekly yoga or stretching sessions. In Papua New Guinea and Ecuador, employees are provided with an area to perform sports activities such as soccer, tennis, or gymnastic exercises in their leisure time in a secured area.

ATTRACTIVE EMPLOYER

Being an attractive employer is key to Schweiter Technologies' ability to compete. The Group seeks to attract new talents and reinforce loyalty among existing employees so that it can continue to be innovative and profitable. The key elements of a wide range of approaches include offering career plans, flexible working hours, and attractive social benefits.

Fostering a cooperative working environment based on a culture of trust, respect, an entrepreneurial mindset and professionalism, backed up by swift decentralized decision-making and open-minded collaboration, is essential to the leadership style at Schweiter Technologies. Bringing forth the best in every employee includes providing opportunities for personal development, growth and a satisfying career at Schweiter Technologies.

At Schweiter Technologies, the respective Human Resources departments are responsible, together with management staff and the Chief Human Resources Officer (CHRO), for establishing and maintaining the Group's reputation as an attractive employer; the positive image of many Schweiter Technologies brands helps in this respect. Internships and occupational training play a specific role in this respect, since attracting career starters is increasingly challenging in many parts of the world. Currently, about 50 apprentices are employed with Schweiter Technologies worldwide.

Straightforward foundamental projects and apprenticeships pave the way for future recruitment. For example, in Papua New Guinea, Schweiter Technologies established a playschool in 2014, and by 2024 106 students have graduated from the schools with the ability to read and write.

Apart from competitive pay, elements of an active employer branding are safe and healthy workplaces (see chapter occupational health and safety), treating employees respectfully and equally at all times, and providing possibilities to develop professional skills, including leadership skills, and soft skills, as well as offering opportunities to contribute to developments within the company, e.g., regarding product refinement and process improvements along the whole value chain.

Recruiting activities and tools

Schweiter Technologies' business areas use their career website, social media presence, and job fairs to recruit new specialists and young talents. To recruit new professionals and retain employees, Schweiter Technologies and its 3A Composites business areas have put together a bundle of measures: Apprentices should be taken on whenever feasible. Additionally, the corporate culture of Schweiter Technologies should be communicated to applicants and employees more effectively to foster a sense of identification with the 3A Composites employer brands. Therefore, the social media communication over 3AC LinkedIn Channel as well as Instagram EU Careers Channel and TikTok for apprentices in Germany has been reinforced and supported by a social media plan as well as a policy developed in the reporting year, respectively. In addition, Schweiter Technologies launched a corporate video in 2024, strengthening the employer brands and helping to familiarize potential candidates with the company.

Employee skills and career development

Schweiter Technologies operates in a dynamic environment with rapidly developing technology, so initial training and continued professional development of employees is a significant success factor. In-person and online training sessions improve employees' qualifications and therefore their career opportunities. During 2024, internally designed and implemented sustainability training courses in Europe were performed via online meetings or video recording to sensibilize all employees in that field and to motivate them to act in line with our values and ESG targets. To more effectively address customer demands, local changes, and requirements, Schweiter Technologies implemented the promotion of internal candidates to key positions in 2024, such as CEO 3AC Display Europe, CEO Industry Europe and the CEO Americas. Additionally, an AI-based software trained on internal affairs was implemented to support the sales, technical service as well as customer service across Schweiter Technologies to find accurate information linked to products and their specifications more rapidly. Ultimately, the aim is to improve the ability to more efficiently support customers in their buying decisions. The sales teams in the European 3A Composites Architecture, Display and Transport & Industry business areas have successfully completed a series of sales training courses to reinforce value-based selling and best-practice procedures across all business areas. In addition, they aligned on key priorities to obtain and strengthen the commitment to "go the extra mile" on supplementary sales targets.

Leadership training is also a priority. In 2024, the six-month online coaching courses for managers were continued mainly in Europe to provide individual support and further development in the leadership role. In Kokopo, Papua New Guinea, leadership courses were continued to prepare local employees for management roles, to inspire and enable them, and to have a positive effect on the site organization and the community. Schweiter Technologies is proud to confirm that for the first time in the history of the Kokopo plantation, half of the leadership team consists of local nationals. This enables cost-efficient and sustainable succession planning and continuity in leadership, as well as perspectives for local skilled employees for career development.

An optimized appraisal process and transparent, structured succession planning should be used to give talented staff the opportunity to manage their careers more effectively. In all business areas, a digital goal setting and personal development process is accessible for employees owning a company email address to track and follow up on agreed company (financial and EHS targets) as well as personal targets and individual career progression. For production employees, a standardized paper evaluation process is available instead.

Gender equality

Schweiter Technologies employs 19% female talents in 2024 compared to 16% in 2023. A pilot women engagement and mentoring program has been started in Ecuador in 2023 and continued in 2024 to support growth and empowerment towards gender equality and to increase the number of women in manufacturing and leadership positions. The program consists of specific workshops and training courses as well as participations at conferences to exchange with or inspire other women on that journey. Around a quarter of the participating women got a promotion from 2023 to 2024.

Regular salary benchmarking is performed by the individual sites and business areas. In 2021, as per legal obligation, the Swiss manufacturing sites achieved a very good result of 0.1% transformed discrimination factor in a gender equality analysis that covered 200 employees

Compensation policy

The Group compensation policy applicable to the Board of Directors and Group Management is documented in the Yearly Group Compensation Report (for further information see Annual Report, p. 101). The compensation policy of employees below Group Management follows the same principles and is aimed at developing long-term working relationships based on, simple, transparent, and attractive compensation programs.

The compensation policy is built along the following principles:

• The compensation programs support the long-term and sustainable success of Schweiter Technologies and promote the corporate values. Executives, and as per local compensation policy employees, are rewarded for business success and their individual contributions.
• The compensation scheme is in line with market practice.
• The compensation programs are defined and managed on the level of business areas or sites and are simple and transparent. At most locations, employees participate in a program called IPE (Incentive for Employees).
• The compensation includes fixed elements, such as base salary and benefits (social contributions, insurances, etc.), as well as variable components, such as performance-based short-term compensation.

In line with the principles of the business strategy, a portion of the compensation of employees consists of a variable incentive based on financial and individual, as well as EHS performance. The decisive objectives are set at the beginning of the year by the Board of Directors and cascaded through Group Management and Human Resources to all employee levels. The compensation structure of employees who fall under collective agreements is defined in the corresponding labor agreements.

The Group Management and Management Teams of the business areas, as well as selected key contributors have the opportunity to benefit in Schweiter Technologies' long-term success through a long-term incentive program.

Opinions and data as the basis for information

The HR departments monitor recruitment and retention figures at site and Group level. This allows for tracking staff turnover on a quarterly basis at all locations and comparing with figures of relevant market benchmarks. Further insightful data and information to evaluate the success of implemented measures are the social media response rate, the number of applicants, participation in training, qualification results, staff feedback via annual employee performance reviews with line managers, career development, return-to-work and exit interviews, as well as staff satisfaction surveys. Around 35% of the workforce was invited to complete an online staff satisfaction survey in 2024.

As in the previous year, the results show that employees rate the areas "Focus on achieving targets", "Strategy, vision, and culture" and "Relationships with colleagues" best at a score of over 4 on a 5 point scale. With a completion rate of 83% and a positive net promoter score for Schweiter Technologies, the results serve as the basis for the teams exploring improvement opportunities and initiating processes to optimize areas such as "Autonomy" and "Feedback and communications".

The Group's ambitious target is a zero voluntary turnover rate. Despite not achieving this idealistic value in 2024, an average Group-wide staff turnover of 15 % does not indicate employee departures above the German Metal- & Electro-Industry of 17%.

Figures for employees, trainees, and fixed-term contracts

		2024		2023
	Salaried staff	Waged staff4	Salaried staff	Waged staff4
Number of employees1	1 214	3 382	1 171	3 017
Male	756	2 982	745	2 761
Female	458	400	426	256
New appointments (total)	196	460	173	315
Internal	56	58	37	56
External	140	402	136	259
Departures (total)²	195	499	159	437
Turnoverrate (unwanted)³	8.0%	6.0%	8.5%	5.5%
Average age	42.4	41.2	43.3	40.3
Average length of service	10.2	9.0	10.6	9.3

• ¹ Employee with either unlimited or limited contract with the company; Headcount used not FTE as part-time employees counted in full
• ² All employees leaving the Group including retirements, employee resignations and employer terminations incl. termination agreements
• ³ Turnover unwanted defined as "unwanted fluctuation", i.e. employee resignations
• ⁴ Including plantation workers

HUMAN RIGHTS STANDARDS

Schweiter Technologies recognizes the rights and dignity of all workers consistent with the United Nations Universal Declaration of Human Rights throughout its worldwide operations in all business areas. Schweiter Technologies expects equal commitments from its business partners.

Schweiter Technologies has around 30 locations worldwide. Some operations of the 3A Composites Core Materials business areas, e.g., in Ecuador or Papua New Guinea, are located in countries whose human rights record is viewed critically by independent bodies. Accordingly, Schweiter Technologies affirms its Group-wide commitment to upholding human rights with clear standards defined in the Code of Conduct and to promote operation under the premise that all employees deserve a living wage and that their rights, especially the fundamental ones, are respected. Violations of human rights are not to be tolerated under any circumstance. The corporate Code of Conduct explicitly sets out the following principles applicable at local, national, and international levels:

• respect for human rights

• prohibition of discrimination

• recognition of individual freedom

• zero tolerance of threats, intimidation, or attacks against human rights defenders

Workers' rights

Complementing the United Nations Universal Declaration of Human Rights, Schweiter Technologies respects the core conventions of the International Labour Organization (ILO) to protect the rights and dignity of all, approximately 4500 employees. The Group-wide Code of Conduct specifies uniform rules for interaction and collaboration at the workplace, which is of particular importance considering the global activity of the company and the consequently large diversity of the workforce:

• Discrimination on the basis of race, gender, national origin, religion, age, sexual orientation or politics is prohibited
• The use of inappropriate language, including profanity, swearing, vulgarity or verbal abuse is prohibited
• Coercion and intimidation are prohibited
• Forced and child labor is prohibited and shall be opposed to

• The freedom of employees to participate in unions or organize collective bargaining associations shall be recognized

• Equitable and transparent remuneration systems shall be implemented

• The improvement of employee skills and competencies shall be promoted by regular performance reviews and educational initiatives such as training and coaching, as appropriate

The human rights aspects prioritized in the different 3A Composites business areas can vary depending on the business model and locations of operation. Thus, guidelines and handbooks at the levels of business areas and sites supplement the corporate Code of Conduct to cover the requirements of locally applicable legislation.

All sites focus on equal employment opportunity, prevention of discrimination, harassment-free workplaces, prevention of child labor, use of legal and documented labor, adequate wages, equal pay for work of equal value, and whistleblowing options to report grievances. The American business area's Employee Handbook covers various specific employees' rights aspects beyond the corporate Code of Conduct, including accommodations for minorities such as persons with disabilities, standards of conflict, timekeeping and overtime, sick leave, safety and security, as well as background checks. The latter are applied during the hiring process to verify eligibility of candidates using standardized and audited processes including the I9 process prescribed by regulatory authorities. Apart from its employees, the business areas also rely on the work of people who are not employed by the company in various functions including IT and consulting personnel, janitors, security, maintenance, and sales representatives. While these non-employees do not sign the Code of Conduct, the expectation of compliance with the Code of Conduct is specified on each purchase order used for contracted workers. Detected infringements would result in corrective action including termination of service contracts where necessary.

The 3A Composites Core Materials business area has a stronger focus on the prevention of forced labor and child labor, legal work, adequate wages, freedom of association, diversity and inclusion, and the prevention of discrimination. Over the last few years, the business areas have developed protocols to prevent violence and human rights violations. Apart from preventive initiatives such as training and awareness campaigns, the 3A Composites Core Materials business area performs due diligence to validate compliance with human rights at its own plants (for further information see the chapter "Responsible supply chain management"). This is of particular relevance for the locations operating plantations in Papua New Guinea and Ecuador. These sites have rules and control mechanisms in place to prevent child labor and slavery and to ensure freedom of association – including age verification of new hires and mandatory recording of candidate profiles, stipulated wages, as well as onboarding and termination protocols, to allow for traceability and verification.

Rights to freedom of association and collective bargaining

Schweiter Technologies acknowledges freedom of association as an international human right and grants it to its employees. Therefore, all applicable local laws and regulations are respected. In total 10 collective bargaining agreements are in place. No concerns or violations of collective bargaining were reported in 2023 and 2024.

Regular audits and checks

Internal measures taken to safeguard the dignity and rights of employees are upheld at Schweiter Technologies through regular checks. Certification and regular audits of the management systems at the individual business areas' sites (for further information see chapters "Environmental compliance and management system", "Occupational health and safety", and "Product quality and compliance") provide further reassurance of compliance with human rights. In Papua New Guinea and Ecuador, for example, this includes audits within the framework of FSC® and ISO certification. Managers of the business areas also conduct regular site visits to identify serious infringements.

No confirmed cases of discrimination or human rights violations were unveiled during the reporting year.

Communities and supply chain

Human rights aspects regarding Schweiter Technologies' affected communities and supply chain are covered in the chapters "Responsible supply chain management" and "Sustainable local communities". Both aspects are of relevance particularly for the 3A Composites Core Materials division with its plantation business. An overarching principle to prevent infringements of human rights is certification of the management system of these plantations, requiring compliance with the legal frameworks and protection of the rights of indigenous communities.

SUSTAINABLE LOCAL COMMUNITIES

Schweiter Technologies operates around 30 production sites worldwide. All sites are embedded in their respective local environment – through relationships with partner companies, local authorities, residents, and employees. Schweiter Technologies cultivates these relationships – in line with particular local circumstances – with the aim of generating added value for its own business as well as the local settings. Due consideration for local communities in terms of environmental and health and safety concerns is anchored in Schweiter Technologies' corporate Code of Conduct.

Several sites of the globally operating Group are located in small urban and rather rural regions. In some cases, they rank among the largest employers in their vicinity. The European and American 3A Composites sites consider local communities to be within the extended urban radius of big cities and equally large spheres of influence around smaller towns and in rural regions, respectively. The exemption is procurement, which is referred to as "local" if goods and services are purchased from suppliers in the entire European Union and from US companies, respectively.

Plant managers and local Human Resources departments maintain contact with communities and are responsible for training and hiring local workers. Where possible, the business areas procure from the surrounding community, aiming to promote local suppliers' ability to operate sustainably. The US-based business areas employ all workers from within their definition of local communities. Further, 98% of the purchased goods are delivered by domestic business partners – only three suppliers from outside the Group are located in foreign countries. Approximately 95% of employees working at the sites of 3A Composites Europe were hired from the local talent pool. Packaging materials are mainly procured from suppliers within the Union, while raw materials are purchased globally.

Impacts of Schweiter operations on local communities

In particular, 3A Composites production sites have impacts on the communities nearby. Many effects of the sites' business activities improve the quality of life locally, especially the creation of value, jobs, and training opportunities. Schweiter Technologies also invests in infrastructure, extending transport routes and improving access to electricity and water, particularly in the vicinity of the larger production plants. Schweiter Technologies further supports initiatives beyond its core business interests and activities (see individual efforts in the subchapter "Local bonds beyond business"). Disadvantages for local communities near the production sites may also arise, for example due to the emission of noise or wastewater. A fundamental element of respectful behavior towards the local communities is the commitment upheld in the Code of Conduct applicable throughout the entire Group to prevent negative impacts or otherwise minimize, mitigate or remediate them. Several sites of the business areas are subject to strict environmental regulations promoting the prevention of adverse health impacts on their local communities. Schweiter Technologies is not aware of any significant health and safety incidents caused by the operations of its business areas.

The operations within the 3A Composites Core Materials business area with its rural balsa wood plantations in Papua New Guinea and Ecuador is particularly noteworthy. The certification of the balsa plantations with FSC® ensures that Schweiter Technologies' balsa wood is deforestation-free, excluding negative impacts on local communities due to deforestation of natural ecosystems. Schweiter Technologies continuously works on improving its due diligence process to guarantee avoiding such impacts also from the selected balsa forestry partners. The usage of forestry machinery is responsible for the main diesel and gasoline consumption across the Group and associated emission of noise and air pollutants. To prevent adverse effects, the sites monitor their environmental impacts and pursue mitigation measures beyond the legal requirements.

With 1 408 employees each (out of around 4 500 at Schweiter Technologies), the Papua New Guinea and Ecuador sites are major employers within their local communities. It is noteworthy to mention that the employed plantation workers are generally covered by a management system for occupational health and safety and that working conditions and wages are aligned with the local laws. The challenge in this industry is that due to fluctuating demands, many temporary workers are required in regions with high administrative hurdles for employment – resulting in a dependency on the involvement of contractors. Furthermore, Schweiter Technologies also relies on farming plantations belonging to third parties, who sometimes have their own staff collaborating in forestry activities. Regarding environmental and social aspects, Schweiter Technologies is convinced that the certified forestry management of balsa wood harvesting at 3A Composites Core Materials plantations compares rather favorably with forestry conducted by smaller groups of businesspeople or plantations in the habitat of and managed by unattended indigenous peoples, which is criticized to be problematic by NGOs such as the WWF. Nevertheless, Schweiter Technologies and its business areas have also reached some agreements with indigenous communities that link the Group's technological and educational support with supply. These are also important contributions to the well-being of the communities, since the balsa wood boom in this region has led to many unattended and unsuccessful small businesses with poor technical know-how and dubious social standards.

Local bonds beyond business

Positive local relationships form the basis for the development of the sites and their innovative solutions – importantly, together with and to the benefit of local communities. A good reputation within the local communities reinforces the brand reputation and employer attractiveness and promotes acceptance of certain disadvantages arising from 3A Composites business activities. It can also increase competitiveness by facilitating access to local resources and markets.

The commitment by Schweiter Technologies includes interplay with local communities beyond direct business-related aspects. Schweiter Technologies believes in long-term benefits from supporting social initiatives and programs that benefit the general well-being of the local residents within the sites' communities. The support of initiatives and projects is managed on site level – and emerged to focus on educational matters. The topics of food security, water quality and general infrastructure complement the range of Schweiter Technologies' main community involvement. A few examples are listed below:

• In Europe, interaction with local communities encompasses close collaboration with schools and universities, as well as support for numerous local organizations and social, cultural and sports projects.
• Schweiter Technologies also supports several social initiatives such as the food bank in Singen, Germany, and a youth center in Darwen (England).
• In Switzerland, Schweiter Technologies offers work experience and special courses for young professionals.
• In Papua New Guinea, Schweiter Technologies is working to improve living standards in the surrounding communities: securing water, food, and housing for employees, suppliers, and partners is a permanent area of focus in the segment's business activity. Moreover, it holds the first public library in the town as well as a preschool and elementary school for children of employees.
• The US sites of the 3A Composites Architecture & Display business area donate funds to support local schools and other educational events, food donation initiatives and facilities as well as homeless shelters, health care institutes and initiatives such as Cancer Funds and programs for children, as well as sports clubs and communities. In 2024, on account of the destruction caused by the hurricane Helene, the management initiated a donation of needed supplies and provided monetary support to the United Way of Asheville and Buncombe County to assist with immediate disaster response and long-term recovery efforts.
• In Ecuador, where there is community engagement with more than 200 plantations where all neighbors have been mapped in a census and joint development projects are financed including improving road access and supporting critical infrastructure.

Governance

GOVERNANCE

The success of Schweiter Technologies stands or falls by its fair and ethical business conduct. The Group therefore attaches great importance to effective and transparent corporate governance. The corporate Code of Conduct contains the fundamental values and rules applicable for all employees, management and board functions – and is expected to be also upheld by any business partner.

Schweiter Technologies operates in business areas delivering to large global companies who expect their suppliers' business ethics and practices to be fair, responsible, and conducted with integrity. Compliance with their own standards is commonly a contractually stipulated obligation. Any suspicion of environmental or social non-compliance could trigger investigations with potential direct consequences for Schweiter Technologies' customer base, including cancellation of active orders, hesitation in awarding new contracts and long-lasting reputational damage to the Group's employer and product brands.

The basic prerequisites for sustainable governance that meets Schweiter Technologies' stakeholder expectations are compliance with all legal requirements as well as ethical conduct regarding people and the natural environment. Besides social and environmental topics, the Group's Code of Conduct defines sound practices with respect to a broad range of business integrity aspects:

• Compliance with international trade regulations and agreements
• Responsible bookkeeping and records
• Fair business practices and integrity
• Competition issues and free market economy
• Bribery and corruption including gifts and entertainment
• Conflicts of interest
• Insider trading

The Sustainability Board is responsible for corporate governance within Schweiter Technologies and manages the principles of application and monitoring. The CEOs of the 3A Composites business areas ensure, with guidance from the legal departments, that laws are complied with and order corrective action in the event of infringement. Good corporate governance makes Schweiter Technologies a reliable partner. It additionally strengthens the brands of 3A Composites products and the recognition of the individual business areas as attractive employers.

Training on the Code of Conduct

The Code of Conduct is made accessible to all Schweiter Technologies employees in the languages of their countries, and they must confirm that they have received and understood the rules and intend to comply with them.

Employees of Schweiter Technologies receive regular training on the content of the Code of Conduct with varying implementation practices across the business areas. An introduction to the Code's contents as part of the onboarding process is a widespread practice across most sites for all employees regardless of their function – and organized in the form of personal mentorship, group or online trainings, or workshops. Recently, Schweiter Technologies started using the online learning platform SoSafe to globally train all employees with a 3A Composites business email address on the Code of Conduct. Subjects include, among other things, human rights, conflict minerals, corruption prevention and the handling of confidential information, and finalization requires verification that the contents have been understood and will be complied with. In 2024, a completion rate of 97 % was achieved.

In addition, all other employees are updated on the Code of Conduct in person and the respective employees also confirm that they have received and understood the rules and intend to comply with them. For examples, the American 3A Composites Display & Architecture business areas presents Code of Conduct contents to production employees in annual group training meetings, where employees ultimately refresh their acknowledgment of the Code.

Promoting fair and responsible business practices

Schweiter Technologies is aware of its responsibility to conduct business sustainably and in line with regulatory requirements. Expectations of both the stakeholders and Schweiter Technologies as well as the range of topics of corporate responsibility have drastically increased in the past decades. The Group's efforts to ensure responsible business practices across all business areas and locations also include transparency. Thus, Schweiter Technologies commissions Eco-Vadis to assess the sustainability performance of its businesses. In 2024, the evaluation covered all European sites involved in the 3A Composites Display, Architecture, 3A Composites Transport & Industry as well as 3A Composites Core Materials (excluding Darwen, UK) business areas. An assessment for the US sites will be evaluated in 2025. The EcoVadis evaluation covers the four key pillars Environment, Labor & Human Rights, Ethics and Sustainable Procurement, and allows identifying improvement potential and transparently sharing performance indicators with customers. Through regular EcoVadis assessments, the Group benchmarks its sustainability performance against global standards and industry peers. This process provides transparent information for interested stakeholders and ensures that Schweiter Technologies remains accountable and can track its sustainability journey with measurable, data-driven insights.

In 2024, 3A Composites Display Europe and 3A Composites Transport & Industry underwent their first round of comprehensive assessments with EcoVadis, achieving Silver and Bronze ratings placing the production sites among the top 15% and top 35% of companies evaluated, respectively. Furthermore, the 3A Core Materials business area completed its second round of assessments, achieving a Silver rating for the majority of sites.

Additionally, Schweiter Technologies has implemented a life cycle analysis for the 3A Composites Display, Architecture, and Transport & Industry product portfolios to reveal key impact areas of each product and transparently communicate product declaration to customers (further details can be found in the FIVE-DOT-MISSION section of this report).

Fair business practices by effective corporate governance are also of utmost priority at Schweiter Technologies. To avoid single-handed violations of contracts or laws and to protect individuals from consequences of poor judgement calls, all commitments of 3A Composites business areas must be signed by at least two responsible persons as a rule to reduce the likelihood of grievances.

By applying the current financial and accounting guidelines, Schweiter Technologies can identify suspected cases of corruption or bribery at an early stage. A number of alarm signals trigger internal investigations, including

• unusual or irregular payment requests
• requests to split payments into smaller amounts
• payments in foreign currencies or to nonstandard addresses
• inconsistent or incomplete documentation for payments
• unusual relationships between vendors and employees
• unreasonable prices or reimbursements

Silver; Foamalite Ltd. Loch Gowna, Ireland (sep. 2024)

Bronze; 3A Composites, Singen (nov. 2024)

In 2024, 3A Composites Transport & Industry has additionally implemented the LEXplus software, including a compliance database, to support newly defined responsible functions in verifying compliance of the applied business practices. In the reporting year, Schweiter Technologies has identified one suspicion of anti-competitive behavior, anti-trust, and monopoly practices. The business unit concerned is currently working intensively on clarifications. No legal action against Schweiter due to such infringements have been experienced in 2024.

Whistleblowing

Schweiter Technologies has decentralized channels through which potential grievances can be reported – some of these channels allow anonymous feedback. Reports are processed by the HR departments once received and detailed investigations are initiated as needed.

In the 3A Composites Core Materials business area, sites in all countries have a slightly different approach to gathering feedback on misconduct and improvement potentials. A common practice is the receptivity of various functions within the business areas, such as line managers or the HR and compliance teams. A whistleblowing hotline or a confidential whistleblowing email address are available at some sites in Ecuador, China, and Poland. The US sites use a third-party online reporting service.

The 3A Composites Architecture, Display and Transport & Industry business areas have a whistleblower software in place for the employees of European business areas and a hotline for the US sites. Via the latter, one complaint was received in the reporting year. The case was not identified an infringement of the corporate Code of Conduct. Furthermore, Schweiter Technologies is not aware of any other complaints or suspicions of Code of Conduct violations.

RESPONSIBLE SUPPLY CHAIN MANAGEMENT

Schweiter Technologies is aware that commitments to sustainability also relate to the supply chain. Responsibility is therefore also placed on suppliers, via the Code of Conduct.

The manufacture and transportation of goods purchased by sites of Schweiter Technologies affects people and the environment. The overall responsibility at Schweiter Technologies for maintaining sustainable standards of supply rests with the Sustainability Board. In addition, the individual business areas monitor their purchasing practices and track suppliers' alignment with the expectations of the Group.

In order to ensure responsible management of the supply chain, Schweiter Technologies supports collaboration with long-standing partners. This increases the potential to influence the suppliers' business practices and simultaneously reduces Schweiter Technologies' risks from suppliers' shortcomings, particularly from fewer new business partners. At the same time, it improves the resilience of the supply chain – for example with regard to delivery delays and bottlenecks. Emerging due diligence regulations pose a financial risk in case of irregularities, in particular the Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor. Careful supply chain management is thus of utter importance to mitigate negative impacts and associated risks.

Supplier structure and purchased goods

Schweiter Technologies maintains business relationships with over 5'000 suppliers. Compared with the previous year, the 3A Composites Architecture & Display Americas business areas have significantly reduced their number of suppliers (–17%) as a consequence of consolidation efforts and intensified relationships with long-standing partners.

Due to the range of products manufactured by Schweiter Technologies, supplies differ between business areas. The main categories purchased per area are listed in the table below:

Core Materials1	Architecture & Display	Transport & Industry
– Balsa wood – Synthetics such as PET, PVC, PPE – Scrim – Chemicals – General and shipping supplies	– Aluminum – Paper – Resin – Synthetic films and sheets – Chemicals	– Aluminum coils, sheets, and profiles – Steel – Foam core materials – Glass fiber – Resin – Gel coat and paints – Glue

¹ The 3A Composites Core Materials business area additionally purchases trading goods such as balsa wood, core materials and ingredients thereof

The balsa wood needed for the production of composite materials has a special role among the list of procured goods. 3A Composites Core Materials purchases up to 20% of the required material. Some aspects of this topic have been introduced in the chapter "Sustainable local communities" with a view of the communities in which balsa forestry is practiced. The high share of contractors occupied due to business growth and fluctuating demands are exposed to a variety of social risks. In particular, the low formality in terms of employment and work contracts in these regions carries the potential of negative impacts such as insecure employment, inadequate wages, and excessive working time. Schweiter Technologies is aware of these circumstances and recognizes its responsibility to promote fair conditions for all individuals involved in their value chain.

Supplier engagement

To prevent or mitigate negative impacts on people and the environment, Schweiter Technologies expects suppliers to assume responsibilities themselves. They must comply with all applicable regulations and guidelines and act with integrity, openness, and professionalism. All suppliers and business partners are asked to commit to abide the requirements set out in Schweiter Technologies' Code of Conduct. The Code refers to standards laid down by international organizations including the International Labor Organization (ILO) and contains specifications with regard to the prevention of child labor and the handling of conflict minerals (for further information on contents concerning human rights issues see chapter "Human rights standards"). Provisions containing the requirement for ecological and social responsibility are embedded in 3A Composites framework agreements and contracts with suppliers.

In addition, the individual business areas selectively apply on-site checks to make sure that suppliers keep to the rules. Infringements of the Schweiter Technologies Code of Conduct or any additional contractual agreement are prosecuted, and consequences are imposed. Ultimately, if attempts at rectification and remediation fail to satisfy the requirements of Schweiter Technologies, the business relationship is terminated.

Schweiter Technologies increasingly engages with suppliers to obtain valuable information about purchased goods, such as the origin of incorporated materials to assess the social and environmental impacts caused by their manufacture. For example, the European units of the 3A Composites Display business area request the CO2 footprints of considerably large product deliveries from key suppliers. The data should support reasonable and responsible procurement choice and the declaration of more precise 3A Composites product carbon footprints, as well as help obtaining an overview of Scope 3 greenhouse gas emissions.

Zero tolerance for child labor and conflict minerals

The Schweiter Technologies Code of Conduct prohibits the use of child labor within the Group and by suppliers. Compliance with the Code of Conduct is strictly monitored in the 3A Composites business areas. In their own operations, this is of particular relevance for sites located in regions where risks are generally higher, such as Papua New Guinea and Ecuador. Additionally, business activities with greater potential for child labor, such as plantation operations, increase Schweiter Technologies' responsibility to ensure that children are not involved in activities defined as child labor. A number of control mechanisms are applied to cover the provisions and monitoring of employment contracts during the recruitment process, as well as regular reviews in connection with FSC® and ISO certification, including monitoring by the auditor.

3A Composites business areas also make purchases in countries where, according to the relevant UNICEF list of countries, there is an increased risk of child labor. Examples are Bolivia, Colombia, Brazil, Mexico, South Africa, Turkey, India, and China. 3A Composites suppliers are required to respect the renunciation of child labor in their own value chain – often enforced by contractual agreement with Schweiter Technologies and its business areas. In accordance with the duty to make an effort set out in the provisions of the Swiss Code of Obligations (OR, Art. 964g ff.), selected suppliers in countries with increased risk were interviewed, i.e. 3A Composites Architecture & Display Americas engaged with all five suppliers in China, India, and Turkey. Monitoring with regard to child labor revealed that in the 2024 reporting year, there were no reasonable grounds for suspicion of child labor and Schweiter Technologies is exempt from further due diligence with relation to child labor.

Schweiter Technologies also exercises due diligence regarding conflict minerals. To minimize risk, the Group has a corporate guideline on this topic ("Policy statement on conflict minerals") in place. 3A Composites business areas do not purchase tin, tantalum, tungsten or gold, also known as 3TG metals, from conflict areas. This has been ensured, for example, for the purchase of methyl tin by a business unit of the 3A Composites Architecture & Display Americas business area. For Switzerland, it was determined that for the 2024 reporting year, Schweiter Technologies was exempt from further due diligence and duty to report with regard to minerals and metals from conflict-affected and high-risk areas.

GRI content index

Schweiter Technologies AG has reported in accordance with the GRI Standards for the period from 1 January 2024 to 31 December 2024. For the Content Index – Essentials Service, GRI Services reviewed that the GRI content index has been presented in a way consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is clearly presented and accessible to the stakeholders. This service was carried out in the English version of the report.

The Sustainability Report of Schweiter Technologies AG, headquartered in Steinhausen, Switzerland, is published as part of the Annual Report. The report will be published on 28 February 2025. The contact person is Urs Scheidegger, CFO, investor@schweiter.com

Applied GRI 1	GRI 1: Foundation 2021
Sector Standard used	None
GRI Standard	Disclosure	Reference/ information*	Omission (requirement(s) omitted, reason, explanation)
GENERAL DISCLOSURES
The organization and its reporting practices
GRI 2: General Disclosures 2021	2-1 Organizational details	p. 76
	2-2 Entities included in the organization's sustainability reporting	p.129–131
	2-3 Reporting period, frequency and contact point	p. 59
	2-4 Restatements of information	No information had to be restated
	2-5 External assurance	This report has not been subject to any external assurance
Activities and workers:
GRI 2: General Disclosures 2021	2-6 Activities, value chain, and other business relationships	p. 26
	2-7 Employees	p. 50
	2-8 Workers who are not employees		Information unavail able/ incomplete. Due to the decen tralised structure of the company, Schweiter does not yet collect data on workers who are not employees at Group level. Schweiter will expand its data collection system in the coming years.

^*Page numbers refer to the Annual Report 2024.

GRI Standard	Disclosure	Reference/ information*	Omission (requirement(s) omitted, reason, explanation)
Management
GRI 2: General Disclosures 2021	2-9 Governance structure and composition	p. 81–84
	2-10 Nomination and selection of the highest governance body	p. 84–85
	2-11 Chair of the highest governance body	p. 82–83
	2-12 Role of the highest governance body in overseeing the management of impacts	p. 27
	2-13 Delegation of responsibility for managing impacts	p. 27
	2-14 Role of the highest governance body in sustainability reporting	p. 63
	2-15 Conflicts of interest	p. 54–55
	2-16 Communication of critical concerns	p. 56
	2-17 Collective knowledge of the highest governance body	p. 82–84
	2-18 Evaluation of the performance of the highest governance body	p. 100–106
	2-19 Remuneration policies	p. 100–106
	2-20 Process to determine remuneration	p. 100–106
			available/ incom plete. Schweiter does not yet calcu late the total annual compensation ratio. As a globally operating company this disclosure is not relevant and has limited compa rability. Schweiter will expand its data collection system in the coming years.
Strategy, policies, and practices
GRI 2: General Disclosures 2021	2-22 Statement on sustainable development strategy	p. 2–3
	2-23 Policy commitments	p. 54–56
	2-24 Embedding policy commitments	p. 54–56
	2-25 Processes to remediate negative impacts	p. 56
	2-26 Mechanisms for seeking advice and raising concerns	p. 56
	2-27 Compliance with laws and regulations	p. 54–56
	2-28 Membership associations	p. 31
Stakeholder engagement
GRI 2: General Disclosures 2021	2-29 Approach to stakeholder engagement	p. 31
	2-30 Collective bargaining agreements		Information un available/ incom plete. Due to the decentralised struc ture of the com pany, Schweiter does not yet collect data on Collective bargaining agree ments at Group level. Schweiter will expand its data col lection system in
* Page numbers refer to the Annual Report 2024.			the coming years.

GRI Standard	Disclosure	Reference/ information*	Omission (requirement(s) omitted, reason, explanation)
MATERIAL TOPICS
Disclosures on material topics
GRI 3: Material Topics 2021	3-1 Process to determine material topics	p. 30
	3-2 List of material topics	p. 30
ECONOMIC PRINCIPLES
A basis of profitable growth
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 4–23
GRI 201: Economic Performance 2016	201-1 Direct economic value generated and distributed	p. 4, 122
Market leadership
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 4–23
Innovation leadership
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 32
Product quality and compliance
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 36
Products with a sustainable impact
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 34
Customer relations GRI 3: Material Topics 2021	3-3 Management of material topics	p. 4–23
	ENVIRONMENTAL PROTECTION AND RESOURCE EFFICIENCY
Environmental compliance and management system
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 28–39
Resource-efficient production and use of materials
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 41–43
GRI 306: Waste 2020	306-1 Waste generation and significant waste-related impacts	p. 43
	306-2 Management of significant waste-related impacts	p. 43
	306-3 Waste generated	p. 44
Energy and greenhouse gas emissions GRI 3: Material Topics 2021	3-3 Management of material topics	p. 40–42
GRI 302: Energy 2016	302-1 Energy consumption within the organization	p. 41
	302-4 Reduction of energy consumption	p. 41
GRI 305: Emissions 2016	305-1 Direct (Scope 1) GHG emissions	p. 41
	305-2 Energy indirect (Scope 2) GHG emissions	p. 41
	305-5 Reduction of GHG emissions	p. 41

^*Page numbers refer to the Annual Report 2024.

GRI Standard	Disclosure	Reference/ information*	Omission (requirement(s) omitted, reason, explanation)
SOCIAL RESPONSIBILITY
Occupational health and safety
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 45–47
GRI 403: Occupational Health and	403-1 Occupational health and safety management system	p. 45–47
Safety 2018	403-2 Hazard identification, risk assessment, and incident investigation	p. 45–47
	403-5 Worker training on occupational health and safety	p. 45–47
	403-6 Promotion of worker health	p. 45–47
	403-9 Work-related injuries	p. 47
Attractive employer
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 47–50
GRI 401: Employment 2016	401-1 New employee hires and employee turnover	p. 50
GRI 404: Training and Education 2016	404-2 Programs for upgrading employee skills and transition assistance programs	p. 48
Human rights standards
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 50–52
Sustainable local communities
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 52–53
GOVERNANCE
Responsible supply chain management
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 56–58
Governance
GRI 3: Material Topics 2021	3-3 Management of material topics	p. 54–56
GRI 205: Anti-corruption 2016	205-3 Confirmed incidents of corruption and actions taken	p. 54–56
GRI 206: Anti-competitive Behavior 2016	206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	p. 54–56

^*Page numbers refer to the Annual Report 2024.

Reference table for Art. 964b Swiss Code of Obligations

Non-financial matters according to Art. 964b Swiss Code of Obligations	Section in this report
Environmental issues	Environmental compliance and management system
	Resource-efficient production and use of materials
	Energy and greenhouse gas emissions
	Products with a sustainable effect
Social issues	Sustainable local communities
Employment issues	Attractive employer
	Occupational health and safety
Respect for human rights	Human rights standards
	Responsible supply chain management
Combating corruption	Governance

All the mandatory climate-related financial disclosures can be found on p. 69 ff.

DECLARATION BY THE BOARD OF DIRECTORS

The Board of Directors of Schweiter Technologies AG approved the non-financial report for the 2024 financial year at its meeting of 26 February 2025 in compliance with Article 964a ff. Swiss Code of Obligations.

RELOCATION REALIZES EMISSIONS REDUCTION

ELIMINATE THE NEED FOR LONG-DISTANCE TRANSPORT, SAVING NEARLY 1.9 MILLION KILOMETERS IN TRANSIT AND REDUCING EMISSIONS ASS WELL AS COSTS.

As part of our business strategy to optimize costs and enhance operational efficiency, Baltek Inc., our 3A Composites Core Material BA site in the United States, made the strategic decision to relocate our extrusion line from Glasgow, KY to High Point, NC. We have termed this initiative the "R-eco-location" due to its significant reduction in upstream Scope 3 emissions.

Since 2016, our extrusion line at the 3A Composites facility in Glasgow, KY has successfully produced over 200 000 cubic meters of structural PET foam core materials. These materials, used in various composite applications such as wind energy and

boat building, were transported by truck or container to High Point, NC for internal use and conversion into finished goods, or to Charleston, SC for export.

Throughout this period, the logistics of transporting materials between our sites required a total of 2 589 53-foot truckloads over a distance of approximately 700 kilometers. This equates to roughly 1.9 million kilometers covered and an estimated 1 000 tons of $\rm CO_2$ equivalent emissions, calculated using well-to-wheel considerations. On a yearly basis, close to 200 tons of $\rm CO_2$ e will be avoided without counting the shorter distance to reach our High Point facility from the port where raw materials arrive.

AVOIDED EMISSIONS

Close to

200 tCO₂e

avoided (calculated with CarboCare in accordance with ISO 14083:2023)

▲ The new production line in High Point, NC, up and running.

TRANSPORT DISTANCE

Glasgow, KY, to High Point, NC

705 km

Equals

1900 000

transportation km saved

IMPLEMENTATION LIFE CYCLE ASSESSMENTS

THROUGH THE IMPLEMENTATION OF LIFE CYCLE ASSESSMENTS, COMPREHENSIVE, ISO-COMPLIANT EVALUATIONS OF ENVIRONMENTAL IMPACTS HAVE BEEN ESTABLISHED.

3A Composites Europe has set ambitious targets to reduce greenhouse gas emissions in its own operations and along its supply chains. Life Cycle Assessment (LCA) is an ideal and accepted methodology to determine the impact of materials, transport routes and energy consumption.

3A Composites Europe has chosen to work with Ecochain B.V. as a leading provider of LCA software. Ecochain's Helix tool enables users to create LCAs independently and to present and evaluate the results in a variety of graphical ways. The calculations are carried out in accordance with the international standards ISO 14040 and 14044 and primarily use established databases for LCA data sets of materials and energy sources.

As a result, the environmental impacts of the 3A Composites Europe sites could be comprehensively analyzed for the first time over the course of the last year. The focus was on the plants' greenhouse gas emissions, broken down into Scope 1, 2 and 3 categories.

Depending on the manufacturing technology and the depth of their own value chain, Scope 1 and 2 emissions are in the range of 5 to 20%. The greatest share of environmental impacts is caused by the raw materials, primarily synthetic, aluminium coils and paper, as well as the upstream manufacturing processes of these materials.

On the basis of the LCAs of the manufacturing locations, the CO2 footprints (Product Carbon Footprint, PCF) could be determined for all product groups. These are made available to our interested customers on request, so that an understanding of the fact-based environmental impacts of sheet products in the customer markets can be developed. In doing so, 3A Composites Europe is taking a pioneering role in many markets and applications.

A thorough understanding of the factors involved provides a sound basis for the future development of the product portfolio, responsible material procurement and the reduction of greenhouse gas emissions along the value chain and in the company's own

▲ For example, the LCA results from our Osnabrück production site reveal that raw materials, scope 3, have the most significant environmental impact. Therefore, our innovation efforts will continue including this area in the future.

plants. In addition to many measures in the area of energy conservation and the use of non-fossil energies, the use of recycled materials is a particular focus of current projects and of particular interest in order to reduce the global warming potential (GWP) and the PCF. Upon request, customers can receive fact-based Product Carbon Footprints (PCF) for all product groups, enabling them to assess the environmental impact of their purchased materials and make informed, sustainable decisions aligned with corporate responsibility goals. This data also supports customers in integrating environmental insights into their sustainability reporting and initiatives, ensuring compliance with regulatory requirements and industry standards.

Climate Report

INTRODUCTION

Schweiter Technologies reports for the first time in reference to the recommendations of the "Taskforce on Climate-Related Financial Disclosures (TCFD)" pursuant to the Swiss Ordinance on Climate Disclosures, which refers to Art. 964a ff CO. This report is providing insights on the integration of climate-related aspects into the "governance", "strategy", "risk management" as well as "metrics and targets" of Schweiter Technologies. The climate report covers the climate-related risks and opportunities that could have an impact on Schweiter Technologies' business in the short to long term and the measures taken by the management.

GOVERNANCE

The ESG governance of Schweiter Technologies is described in detail on p. 27 of the Sustainability Report. Climate-related topics are integrated in the ESG governance.

The Board of Directors takes responsibility for the overall corporate strategy. In this course, the Board of Directors oversees also the implementation of the climate transition plan described below. Additionally, the Board of Directors is responsible for corporate risk management which includes climate risks. This climate report including the transition plan is checked and approved annually by the Board of Directors.

On the management side, the sustainability committee is working together with the operational sustainability team (including the Group Sustainability Manager) on the implementation of the sustainability strategy and the climate transition plan. This includes the identification and assessment of risks and opportunities, the development of action plans to enhance transparency of the carbon footprint, reduce emissions and the management of relevant risks and opportunities with corresponding measures. In view of the highly decentralized company structure, the CEOs of business areas are responsible for the implementation of measures such as initiatives and projects in the business areas.

STRATEGY

Climate-related risks and opportunities

Climate change results in risks and opportunities for business activities and the value chain of Schweiter Technologies. In- and outflows of materials of Schweiter Technologies are affected by climate-change-induced transitions in regulation and markets. Manufacturing processes in the supply chain and Schweiter Technologies' operations rely on gas and electricity, making the company sensitive to potential changes in energy availability and costs driven by climate-related transitions of the energy system.

Schweiter Technologies assessed climate-related risks through two lenses: physical and transition risks. Physical risks involve the effects of climate change, such as shifting climate patterns and more frequent extreme weather events. These changes could disrupt production processes in its sites and impact supply chain continuity. Transition risks, but also opportunities arise from evolving regulations, changes in customer preferences, and shifts in technology to address climate change.

Schweiter Technologies is identifying and assessing climate-related risks and opportunities under the following two scenario considerations.

Below 2-degree scenario Business-as-usual scenario

• Enhanced international cooperation drives shared climate mitigation efforts and resource sharing.
• Major shift to renewable energy sources reduces fossil fuel dependency and carbon emissions across industries.
• Adoption of circular economies reduces reliance on virgin materials through recycling, reusing, and remanufacturing.
• Economic systems and societal values realign with sustainable practices, influencing industries, consumers, and policies.
• Greenhouse gas emissions are drastically reduced to keep global warming below 2 °C.

• Controlled global warming leads to more stable and predictable climate patterns, enhancing climate resilience and supporting ecosystems and communities.

• Limited international collaboration, with vulnerable regions facing greater climate impacts.

• Energy systems largely depend on fossil fuels, with slow adoption of renewable alternatives, perpetuating high carbon emissions.
• Traditional, linear production models persist, heavily reliant on virgin materials with limited recycling or reuse.
• Economic systems and consumer behaviors maintain conventional practices, with gradual adoption of sustainable choices.
• Greenhouse gas emissions remain elevated, with global warming projections significantly exceeding 2 °C due to limited mitigation efforts.
• More frequent and severe climate events, such as extreme weather, droughts, and rising sea levels, disrupt ecosystems and communities.

In the following summary of the climate-related risks and opportunities, the focus of the business-as-usual scenario was on physical risks whereas transition risks and opportunities were assessed under the below 2-degree scenario. The potential business impacts of risks and opportunities are assessed as low, medium or high. Related time horizons are: short-term is defined as 1–3 years, mid-term as 4–10 years and longterm is defined as over 10 years. The assessments of potential impacts are initial indications, with the aim to refine over time.

Business-as-usual scenario

In this scenario, climate-induced physical risks are increasing. Changing climate patterns might threaten the physical integrity of production sites through acute events (e.g., flooding, heavy winds) and chronic climate impacts like droughts or rising sea levels. Additionally, the availability and prices of raw materials become increasingly volatile due to weather extremes impacting suppliers, substitute products, transportation routes, and local energy supplies.

Risk characteristics (category, value chain, time horizon)	Risk description	Potential impact on Schweiter	Measures
Physical – acute and chronic Suppliers and own operations Mid- to long-term	Physical integrity of assets Changes in climate patterns can affect the physical integrity of production locations (including manufacturing facilities and plantations) by acute events (e.g., floodings, heavy winds) or chronic climate impacts such as droughts or sea level.	Damage of assets, higher operating costs for protective measures Impact: low to medium	– Diversification of production locations
Physical – acute	Availability of raw materials and	Higher procurement and	– Supply chains kept
and chronic	fluctuations in prices	transportation costs,	short with dual- or
Raw materials and	The availability and prices of	availability of raw materials,	multi-sourcing
suppliers	raw materials may be affected	delivery difficulties,	where possible
Mid- to long-term	by chronic and acute weather	disruptions in the supply	–Diversification of
	extremes hitting direct suppliers,	chain	used raw materials
	the production of substitute products such as cotton, main transportation routes or local energy supply.	Impact: medium	– Product innovation

Below 2-degree scenario

In a below 2-degree scenario, focused climate action and stricter regulations drive a transformative shift toward sustainable practices, renewable energy sources and circularity. In this scenario, Schweiter Technologies would face transition risks such as fluctuating raw material availability and costs, tighter regulations, and increasing pressure from customers and stakeholders demanding strong climate performance and measurable progress on sustainability.

Risk characteristics (category, value chain, time horizon)	Risk description	Potential impact on Schweiter	Measures
Transition – market Raw materials and suppliers Mid- to long-term	Availability of raw materials and fluctuations in prices Changes in production volume in oil exploration and extraction, along with energy costs affecting materials, might impact the availability of raw materials and cause price fluctuations for Schweiter Technologies.	Higher procurement costs, availability of raw materials and energy, disruptions in the supply chain Impact: medium to high	– Product portfolio transformation towards more sustainable products – Supply chains kept short with dual- or multi-sourcing where possible
Transition – policy & legal, technology, market Whole value chain Short- to long-term	Environmental regulations, customer preferences and technological progress Current and upcoming environmental and climate regulations as well as changes in customer preferences affect Schweiter Technologies and the whole value chain. Many regulations and potentially changing customer preferences towards bio-based materials, non-fossil feedstock, low carbon footprint as well as circularity of products might alter product demand and have effects on the availability of raw materials, product composition and performance. Technological advancements of competitors regarding the product carbon footprint can be a risk for Schweiter Technologies.	Higher operational costs for value chain coordination and documentation, higher R&D costs and costs for changing business processes, higher procurement costs, decrease in revenues/ market shares Impact: medium	– Product portfolio transformation towards more sustainable products – Regular tracking of current and upcoming environmental and climate regulations
Transition – reputation Own operations Short- to long-term	Reputation regarding climate action Reputational risks can arise from different expectations of investors, customers and other stakeholders regarding the ambition of climate goals and the progress towards these goals.	Loss of reputation, lower revenues, availability and attractiveness of financing conditions Impact: low to medium	– Product portfolio transformation towards more sustainable products – Investments in sustainable product development and sustainability program. See Sustainability Report chapter products with a sustainable impact – Ongoing renewal of machine fleet and infrastructure to latest technology standards

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However, in this below 2-degree scenario, the significant efforts of Schweiter Technologies in customer-focused innovation towards more environmentally friendly products can support the company in meeting the rising demand of climate-conscious consumers and can increase the competitiveness. This shift towards renewable energy generation and cleaner mobility provides significant business opportunities for Schweiter Technologies, delivering these markets with products, e.g., wind blades and lightweight materials, to foster sustainability.

The prioritized climate-related opportunities in the below 2-degree scenario for Schweiter are summarized in the following table.

Opportunity characteristics (category, value chain, time horizon)	Opportunity description	Potential impact on Schweiter	Measures
Product/Services Whole value chain Short- to long-term	Customer preferences and technological progress Schweiter Technologies continues transforming its product portfolio by offering sustainable products and products with extra functionalities, such as PV façades that additionally generate energy or recycled products in visual communication. Innovative efforts for a greener product design and differentiation could provide Schweiter Technologies' differentiation opportunities to gain a competitive advantage and strengthen the brands.	Increase in revenues and market share Impact: medium to high	– R&D and production process innovation in the business areas. See Sustainability Report p. 33-37 (Chapter products with a sustainable impact) – Ongoing renewal of machine fleet and infrastructure to latest technology standards
Market Whole value chain Short- to long-term	Enabler of cleantech industries Climate change and the demand for renewable energy supply is increasing the customer base of Schweiter Technologies and the demand for wind power plants. Trends towards cleaner mobility solutions can lead to a higher demand for lightweight solutions (such as façades, road and air mobility materials and components).	Increase in revenues and market share Impact: medium to high	– R&D and production process innovation in the business areas.

Resilience of business model

Schweiter Technologies is close to customers and offers innovative solutions with a customer-centric approach. The approach to innovation and efforts in the diversification of suppliers can help Schweiter Technologies to increase the resilience of Schweiter Technologies' business model against a variety of risks including climate-related risks and support the business in leveraging opportunities. The resilience of Schweiter Technologies' business model is determined by its flexibility and capacity to adapt to varying challenges. Under the below 2-degree scenario, resilience is primarily contingent on the effective implementation of mitigation measures, whereas in a business-as-usual scenario, it is driven by the ability to deploy robust adaptation strategies to address the impacts of climate change across its whole value chain.

Schweiter Technologies is in the earlier stages of climate risk analysis and recognizes the importance of further refining and strengthening its financial impact analysis on different climate scenarios.

Climate transition plan

The climate transition plan for Schweiter Technologies plans for the transition towards a low-carbon economy. It comprises the company's approach to reduce its carbon footprint, to reduce climate-related risks and make use of climate-related opportunities.

Schweiter Technologies has been measuring the greenhouse gas emissions of its own operations (Scope 1 and 2) for several years and reports them annually, see Sustainability Report p. 41. The analysis as a basis for the formulation of near-term interim climate targets and the recording of greenhouse gas emissions in the value chain (Scope 3) have been started, but require further development time due to the highly decentralized structure of Schweiter Technologies. In order to improve the conditions for accounting, target setting and monitoring, a process was launched in 2024 to improve data collection and analysis throughout the company using a specialized software platform.

Schweiter Technologies strives to actively protect the climate and inevitably invests in the reduction of greenhouse gas emissions, e.g., an ongoing renewal of its machine fleet and infrastructure to latest technology standards. Measures and examples are described in the Sustainability Report on p. 42.

Key elements to reduce risks and make use of opportunities are mentioned above. Often, they are closely linked to Schweiter Technologies' innovation strategy, which drives the product portfolio transformation towards more sustainable products. Further information can be found here: in the Sustainability Report on p. 32.

RISK MANAGEMENT

The risk assessment and management within Schweiter Technologies is conducted on several levels, also reflecting the decentralized structure of the group. The business areas are responsible for determining, evaluating, and managing local risks. The processes for managing climate-related risks and opportunities are described with the measures in the tables above on p 72.

A systematic identification of higher-ranking risks that could have a significant impact on Schweiter Technologies and its business activities is carried out by the Finance department at Group level. The risk analysis is based on expert analysis on Group level and presented to the Board of Directors by the CFO. The risks identified are classified according to the criteria of probability of occurrence and potential impact. Where necessary, individual risks are analyzed in greater depth and measures are taken to minimize these risks. The Board of Directors discusses the higher-ranking risks to Schweiter Technologies at least once a year. The last risk assessment by the Board of Directors was conducted in December 2024. For further information on this process, see p. 6. For the corporate governance mechanisms on risk management, see p. 89 in the Corporate Governance Report.

For the first time, climate-related risks and opportunities were explicitly identified and assessed during two workshops on Group level in 2024. The consolidated results are shown in this report. Various corporate functions were involved in ensuring a thorough evaluation of potential impacts on the value chain and business areas. In a second step, prioritized climate risks were integrated into the general risk assessment, and cross-connections with existing risks were identified.

In this course, climate aspects were also integrated into the formal internal risk management guidelines. Climate risks are integrated into the respective risk classification categories and no separate category for ESG, or climate risks was developed. Further steps towards the integration of climate-related risks into the risk management cycle are planned for the next years.

METRICS AND TARGETS

Schweiter Technologies is reporting its Scope 1 and 2 greenhouse gas emissions in the Sustainability Report on p. 41.

Further metrics and targets are under consideration, when Schweiter Technologies advances with the collection of climate-related data.

CORPORATE GOVERNANCE

Group structure and shareholders	76
Capital structure	77
Board of Directors	81
Group Management	90
Shareholders' participation rights	92
Change of control and defense measures	94
Statutory auditor	95
Information policy	96
Blackout periods	97

GROUP STRUCTURE AND SHAREHOLDERS

Schweiter Technologies AG assures its customers, shareholders, investors, and employees that it is fully committed to good corporate governance based on the Articles of Association and organizational regulations of the company.

Schweiter Technologies AG adheres to the standards of the Directive on Information relating to Corporate Governance published by SIX Exchange Regulation.

GROUP STRUCTURE

Schweiter Technologies, with its head office in Steinhausen, Switzerland, is a globally active Group focusing on composites solutions with its division 3A Composites. The main activities include the development, production, and distribution of high-quality composites, paper and synthetic sheets, foam boards, and core materials based on balsa wood and PET foam. These materials are used primarily in the areas of visual communication (display), architecture, wind energy, industry, train and bus manufacturing, and marine engineering.

Its best-known brands are AIREX®, ALUCOBOND®, BALTEK®, DIBOND®, FOREX®, GATOR®, KAPA®, PERSPEX®, and SINTRA®.

An overview of all Group companies can be found in the financial section on page 173.

Schweiter Technologies AG has a share capital of CHF 1 431 808 divided into 1 431 808 registered shares with a par value of CHF 1 per share. The company's registered shares are traded on the SIX Swiss Exchange Reporting AG International Standard under ISIN CH1248667003, symbol SWTQ; registered shares security no. 124866700.

Based on its share price of CHF 413 at the end of 2024, the company's market capitalization stood at CHF 591.3 million as of 31 December 2024.

The scope of consolidation comprises the unlisted companies which were fully consolidated as of 31 December 2024 and is presented on pages 129 to 131 of the notes to the consolidated annual financial statements.

TREASURY SHARES

As of the balance sheet date, Schweiter Technologies AG held 84 treasury shares, representing 0.006% of voting rights (previous year: nil).

SIGNIFICANT SHAREHOLDERS

As of 31 December, the following shareholders held more than 3% of voting rights:

PERCENTAGE OF SHARES HELD (ACCORDING TO MOST RECENT

DISCLOSURE NOTICE)	2024	2023
KWE Beteiligungen AG, Wollerau1	25.49%	25.49%
Beat Siegrist Beteiligungen AG, Zug	5.81%	5.81%
UBS Fund Management (Switzerland) AG, Basel2	4.99%	n/a
Matter Group AG, Meilen	3.00%	–
1832 Asset Management L.P., Toronto, Canada	< 3%	12.46%
Credit Suisse Funds AG, Zurich2	n/a	3.01%

¹ KWE Beteiligungen AG is held by a group of shareholders consisting of Brigitte Frey, Vanessa Frey and MARLA Foundation.

² In 2024, absorption merger of Credit Suisse Funds AG and UBS Fund Management (Switzerland) AG – for details of disclosure notice see below.

During the 2024 financial year, the following disclosure notices of shareholdings were made in accordance with Article 120 ff. FinMIA (Financial Market Infrastructure Act):

• With disclosure notice as of 22 October 2024, the shareholder 1832 Asset Management L.P., Ontario Canada, disclosed the reduction of its participation to below 3% (for previous notifications of this shareholder in the reporting year, see the disclosure platform of SIX Exchange Regulation).
• With disclosure notice as of 22 October 2024, the shareholder Thomas Matter, Matter Group AG, Meilen, disclosed a participation of 3.003%.
• With disclosure notices as of 19 September 2024 and 12 April 2024, the shareholder KWE Beteiligungen AG, Wollerau, disclosed changes in composition of the group, while the shareholdings remained unchanged.
• With disclosure notice as of 13 July 2024, the shareholder UBS Fund Management (Switzerland) AG, Basel, disclosed a participation of 4.988% (for previous notifications of this shareholder in the reporting year, see below).
• With disclosure notice as of 9 May 2024, UBS Fund Management (Switzerland) AG, Basel, disclosed a combined holding of 5.876% due to the absorption merger between Credit Suisse Funds AG and UBS Fund Management (Switzerland) AG and the aggregation of the relevant interest in both entities. Upon the merger, Credit Suisse Funds AG ceased to exist and UBS Fund Management (Switzerland) AG was the surviving entity.

Details about the disclosure of shareholdings are available on the SIX Exchange Regulation website: https://www.ser-ag.com/en/resources/notificationsmarket-participants/significant-shareholders.html

As far as Schweiter Technologies AG is aware, there are no shareholder agreements between the significant shareholders.

CROSS-SHAREHOLDINGS

There are no cross-shareholdings with other companies relating to capital or voting rights.

CAPITAL STRUCTURE

CAPITAL

Since the Annual General Meeting held on 4 April 2023, the share capital has amounted to CHF 1 431 808, divided into 1 431 808 registered shares with a par value of CHF 1 per share.

In 2023, the Annual General Meeting of Schweiter Technologies AG approved the conversion of the previously existing bearer shares with a par value of CHF 1 each into registered shares. For further details please refer to the Annual Report 2023, Corporate Governance section on page 62. https://www.schweiter.ch/s1a200/investors/financ ial-reports-presentations.html

Conditional capital amounted to a total of CHF 132 600, as of 31 December 2024. There was no authorized capital as of 31 December 2024 and 31 December 2023, respectively.

CAPITAL BAND AND CONDITIONAL CAPITAL IN PARTICULAR

Capital band

The company's Articles of Association in effect as of 31 December 2024 do not provide for a capital band.

Conditional capital

Conditional capital amounts to a total of CHF 132 600.

The company's share capital may be increased by a maximum of CHF 132 600 (9.26% of existing share capital) through the issuance of a maximum of 132 600 registered shares to be fully paid in, each with a par value of CHF 1, including:

• a) up to an amount of CHF 32 600 by exercise of option rights, granted to the employees of the company or of one of its subsidiaries at conditions to be determined by the Board of Directors;
• b) up to an amount of CHF 100 000 by exercise of option or conversion rights granted in conjunction with bonds or similar debentures issued by the company or one of its subsidiaries.

Shareholders' subscription rights relating to this maximum of 132 600 registered shares are excluded. Shareholders' preferential subscription rights in the case of warrants or convertible bonds pursuant to b), involving a maximum of 100 000 registered shares, may be restricted or excluded by a resolution of the Board of Directors (i) to directly or indirectly finance the acquisition of companies, portions of companies or shareholdings or new company capital expenditures, or (ii) to issue these bonds on international capital markets.

If preferential subscription rights are excluded, the bonds must (i) be placed with the previous owners of companies, portions of companies or shareholdings, or (ii) be placed with the general public at market conditions, in which case the exercise price for the new shares must be set at least in line with the market conditions at the time of the bond issue, and the exercise period for the option or conversion rights must be set at no more than seven years from the time of the bond issue.

CHANGES IN CAPITAL DURING THE LAST THREE FINANCIAL YEARS

The ordinary share capital of Schweiter Technologies AG is CHF 1 431 808 as of 31 December 2024, the same as on the reporting dates of the previous two years.

Conditional capital has remained unchanged at CHF 132 600 for the last three years. As of 31 December 2024, no capital band exists. In addition, as in the two previous years, there was no authorized capital as of the respective balance sheet dates. For details of changes in the consolidated shareholders' equity in financial years 2024 and 2023, reference is made to page 125 of the consolidated financial statements. The development of consolidated shareholders' equity in financial year 2022 is presented on page 110 of the 2023 consolidated financial statements.

The company's Annual Reports can be downloaded from the corporate website:

https://www.schweiter.ch/s1a200/investors/financ ial-reports-presentations.html

Changes in the shareholders' equity in financial years 2022 through 2024:

		Statutory capital reserves
(in CHF m)	Share capital	Other capital reserves	Free retained earnings	Total equity
Balance as of 31 December 2021	1.4	3.2	429.7	434.3
Net income 2022			51.5	51.5
Dividend			–57.3	–57.3
Balance as of 31 December 2022	1.4	3.2	423.9	428.5
Net income 2023			44.4	44.4
Dividend			–28.6	–28.6
Balance as of 31 December 2023	1.4	3.2	439.7	444.3
Net income 2024			28.6	28.6
Dividend			–21.5	–21.5
Balance as of 31 December 2024	1.4	3.2	446.8	451.4

SHARES, PARTICIPATION CERTIFICATES, AND DIVIDEND-RIGHTS CERTIFICATES

As of 31 December 2024, the share capital consists of 1 431 808 registered shares with a par value of CHF 1 each, amounting to a total of CHF 1 431 808. All registered shares are fully paid up. Each share entitles the holder to one vote at the General Meeting. All registered shares are entitled to dividends.

Schweiter Technologies AG has no participation certificates or dividend-rights certificates outstanding.

SHARE REGISTER AND RESTRICTIONS ON TRANSFERABILITY AND NOMINEE REGISTRATIONS

A share register is kept for the registered shares. Pursuant to Article 3bis of the Articles of Association as amended on 4 April 2023, a person is recognized as a shareholder or usufructuary if he or she is entered as such in the share register with his or her surname and first name, place of residence, address, and nationality (legal entities with company name, domicile, and registered office). Shareholders must expressly notify the company of any changes in their contact details for the attention of the share register. If this is not done, any notices sent by the company to the registered contact details shall still be deemed to have been validly delivered. Registration in the share register as a shareholder with voting rights is subject to the approval of the Board of Directors, which may delegate this authority in whole or in part.

The Board of Directors may reject acquirers and their entry in the share register if they do not expressly declare that they have acquired and hold registered shares in their own name and for their own account, that there is no agreement on the redemption or return of corresponding shares, and that they bear the economic risk associated with the shares. Until the acquirer has been recognized by the company, the acquirer may neither exercise the voting rights attached to the shares nor any other membership rights or other related rights. Voting rights and the other rights mentioned may only be exercised to the extent that a shareholder with voting rights is entered in the share register.

Persons who do not expressly declare in the application for registration or at the request of the company that they hold the shares for their own account (hereinafter: nominees) will be entered in the share register with voting rights up to a maximum of 3.0% of the outstanding share capital. Over and above these limits, registered shares of nominees will only be registered with voting rights if the nominee concerned discloses, at the time of application for registration or thereafter upon request by the company, the names, addresses, nationalities, and shareholdings of those persons for whose account he or she holds 0.5% or more of the outstanding share capital. The Board of Directors is authorized to enter into agreements with nominees on simplified reporting requirements and to approve increases in the aforementioned restrictions and limits.

Legal entities and partnerships or other associations of persons or joint ownerships which are linked to each other by capital or votes, by common management or in any other way, or which coordinate their conduct, shall be deemed to be one shareholder or one nominee.

The Board of Directors may, after hearing the persons concerned, delete entries in the share register as a shareholder with voting rights if such entries have been made on the basis of false information or if the person concerned fails to provide requested information. The person concerned must be informed of the deletion immediately.

The Board of Directors may issue supplementary provisions if necessary. The registration restrictions set forth in Article 3bis of the Articles of Association shall also apply to shares subscribed or acquired through the exercise of subscription, option or conversion rights. These provisions shall also apply mutatis mutandis to usufructuaries.

In the reporting year 2024, no entries were refused or exceptions granted.

According to Article 16 of the Articles of Association, a restriction on the transferability of registered shares requires a resolution of the Annual General Meeting of Shareholders passed by at least two thirds of the votes represented and a majority of the par value of the shares represented.

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

CONVERTIBLE BONDS, LONG-TERM INCENTIVE PLAN, AND OPTIONS

No convertible bonds are outstanding as of 31 December 2024. As set out in the section on "Conditional capital", drawing on the conditional capital may increase the company's share capital by a maximum of CHF 100 000 by the exercise of option or conversion rights granted in conjunction with bonds or similar debentures issued by the company or one of its subsidiaries.

In the financial year 2024, the Board of Directors approved a Long-term Incentive plan (LTI) with a duration of three business years (2024–2026) for the members of Group Management and key employees within the Group.

The future payment of the LTI will be in cash and will therefore not lead to a future dilution of earnings.

Details of the Long-term Incentive plan and the payment can be found in the Compensation Report 2024 on pages 100 to 114. For details of the expired Long-term Incentive plan (2021–2023) please refer to the Compensation Report 2023 on pages 86 to 100 as well as the Compensation Reports 2022 on pages 68 to 81 and 2021 on pages 68 to 79.

https://www.schweiter.ch/s1a200/investors/financ ial-reports-presentations.html

There are no option plans in place.

BOARD OF DIRECTORS (AS OF 31 DECEMBER 2024)

from left to right

DR. DANIEL BOSSARD

Member since 2021 (non-executive)

LARS VAN DER HAEGEN

Member since 2020 (non-executive)

DR. HEINZ O. BAUMGARTNER

Chairman since 2023 (non-executive) Member since 2020

BEAT SIEGRIST

Member since 2008 (non-executive)

VANESSA FREY

Member since 2014 (non-executive)

DR. JACQUES SANCHE

Member since 2011 (non-executive)

STEPHAN WIDRIG

Member since 2021 (non-executive)

Members

Name		Function Member since AGM		Committees
Board of Directors			AC2	NCC3
Dr. Heinz O. Baumgartner	Chairman	2020 Chairman 2023	–	–
Dr. Daniel Bossard	Member	2021	–	Member
Vanessa Frey	Member	2014	–	Member
Dr. Jacques Sanche	Member	2011	–	Chair
Beat Siegrist	Member	2008	–	–
Lars van der Haegen	Member	2020	Chair	–
Stephan Widrig	Member	2021	Member	–
Number of meetings in financial year 2024	5		4	2
Average attendance ratio1	100%		100%	100%

• ¹ The average attendance ratio regarding the Committees refers directly to the members of the respective Committee. Additional participants who participate as guests in the Committee meetings are not included in the percentage calculations.
• One Board meeting was held in each of the first, second and third quarter, and two Board meetings were held in the fourth quarter.
• Roman Sonderegger, CEO, and Urs Scheidegger, CFO, attended all meetings of the Board of Directors.
• 2 Audit Committee ("AC"); one meeting of the AC was held in each of the first and fourth quarter, and two meetings in the third quarter.
• Roman Sonderegger, CEO, and Urs Scheidegger, CFO, attended all four meetings of the AC.
• ³ Nomination and Compensation Committee ("NCC"); one NCC meeting was held in each of the first and fourth quarter.
• Roman Sonderegger, CEO, and Urs Scheidegger, CFO, attended both meetings of the NCC; they were absent during the discussion regarding their remuneration.

At the Annual General Meeting held on 10 April 2024, Heinz O. Baumgartner, Daniel Bossard, Vanessa Frey, Jacques Sanche, Beat Siegrist, Lars van der Haegen, and Stephan Widrig were reelected individually as members of the Board of Directors for a one-year term of office. At the same meeting, Heinz O. Baumgartner was reelected as Chairman of the Board of Directors for a one-year term of office.

At the Annual General Meeting held on 10 April 2024, Jacques Sanche, Daniel Bossard, and Vanessa Frey were re-elected individually as members of the Nomination and Compensation Committee for a one-year term of office. For the 2024 financial year, Jacques Sanche re-assumed office as Chair of this committee.

MEMBERS OF THE BOARD OF DIRECTORS

DR. HEINZ O. BAUMGARTNER

1963, Swiss citizen Chairman since 2023 Member since 2020 (non-executive since 1 October 2022)

Heinz O. Baumgartner has been member of the Board of Directors of Schweiter Technologies AG since 2020 and has served as Chairman since April 2023. From 2008 until 30 September 2022, he was CEO and member of the Group Management of Schweiter Technologies Group. From 1996 to 2013, he was also CFO of Schweiter Technologies. From 1992 to 1995, he worked as a controller at Asea Brown Boveri Switzerland.

He has been a member of the Board of Directors of United Grinding Group since 2018 and was a member of the Board of Directors of Zur Rose Group AG from 2017 to 2019. In April 2021, he was elected to the Board of Directors of Bystronic AG (formerly Conzzeta AG), and since 2022 he has served as Chairman of this company.

Heinz O. Baumgartner holds a degree in business management (specializing in accounting) and a doctorate in economics from the University of St. Gallen.

DR. DANIEL BOSSARD

1970, Swiss citizen Member since 2021 (non-executive)

Daniel Bossard has been CEO of the Bossard Group since 2019, having been CEO Northern and Eastern Europe from 2009 to 2018. From 2006 to 2008, he served as Sales & Marketing Manager of the Bossard Group and was responsible for the realignment of Bossard's sales strategy as well as the development of international customer relations. From 2003 to 2006, he was CEO of Bossard Denmark. Daniel Bossard joined Bossard in 2000 as an E-Business Manager, after having worked as a consultant for Andersen Consulting (today Accenture).

Daniel Bossard holds a degree in business administration and a doctorate in technology management from the University of St. Gallen.

VANESSA FREY

1980, Swiss citizen Member since 2014 (non-executive)

Vanessa Frey has been Chairwoman of the Board of Directors of Corisol Holding AG since 2024 (CEO and member of the Board of Directors since 2007). She has been Chairwoman of the Board of Directors of KWE Beteiligungen AG since 2024 (member of the Board of Directors since 2008). In 2024, she became Chairwoman of the Board of Directors of Swiss Small Cap Invest AG (member of the Board of Directors since 2008). She has been a member of the Boards of Directors of Tata 1mg Technologies Private Limited (since 2021) and Inficon Holding AG (since 2012). She was a member of the Board of Directors of Zur Rose Group AG from 2016 to 2019. Until 2018, Vanessa Frey was Vice President of Garaventa Accessibility AG. She worked from 2004 to 2006 in the Corporate Finance team at Handelsbanken Capital Markets in Stockholm, Sweden, and subsequently as an asset manager in Hong Kong.

Vanessa Frey studied economics and law at the University of St. Gallen and holds a Master of Science degree in International Economics and Business from the Stockholm School of Economics, Sweden.

DR. JACQUES SANCHE

1965, Canadian and Swiss citizen Member since 2011 (non-executive)

Jacques Sanche has been CEO of Bucher Industries AG since 2016. He was CEO of Belimo Group from 2007 to 2015. From 2004 to 2007, he was CEO of the WMH Tool Group, Chicago, USA, and member of the management board of WMH Walter Meier Holding AG, Stäfa (since 2018 Meier Tobler AG). Between 1997 and 2004, he held various executive management positions within the WMH Walter Meier Group. From 1990 to 1997, he was consultant at IMG, St. Gallen, and the Boston Consulting Group, Munich.

Jacques Sanche holds a business management degree and a doctorate in economics from the University of St. Gallen.

BEAT SIEGRIST

1960, Swiss citizen Member since 2008 (non-executive)

Beat Siegrist has been a member of the Board of Directors since 2008 and served as Chairman from 2011 until the Annual General Meeting 2023.

He has been a member of the Board of Directors of Phoenix Mecano AG since 2003, and a member of the Board of Directors of Inficon Holding AG since 2010. From 2013 to 2018, he served as Chairman of the Board of Directors of Garaventa Accessibility AG. From 2008 to 2012, he was CEO of Satisloh and a member of the Executive Committee of the French Group Essilor.

Beat Siegrist worked in an executive function as CEO of Schweiter Technologies from 1996 until mid-2008. Prior to 1996, he worked as a consultant at McKinsey & Co.

Beat Siegrist holds a degree in engineering (dipl. Ing. ETH) and an MBA from INSEAD Fontainebleau.

LARS VAN DER HAEGEN

1968, Swiss citizen Member since 2020 (non-executive)

Lars van der Haegen has been CEO of the Belimo Group and Head of the Group Executive Committee since July 2015. Prior to that, he held various management positions at Belimo: Head of Product Management Air Volume Control Europe from 2000 to 2002, Head of Product Management and Marketing at Belimo Americas from 2003 to 2006, Managing Director of Belimo Italy from 2007 to 2010, and Head of Americas and member of the Group Executive Committee from 2011 to June 2015.

Lars van der Haegen is a Building Technology Designer who holds a Master of Business Administration (MBA) from the Columbia Business School in New York and an MBA from the London Business School.

STEPHAN WIDRIG

1972, Swiss citizen Member since 2021 (non-executive)

Stephan Widrig has been CEO of Allreal Group, Zurich, a leading Swiss Real Estate investor and developer, since May 2023. Prior to that, he worked for Flughafen Zurich AG (Zurich Airport Group) in various positions for 23 years in Switzerland and in India, including 15 years as a member of the Management Board, and the last eight years as Group CEO.

Stephan Widrig holds a master's degree in international relations from the University of St. Gallen.

Other activities and vested interests

During the year under review, the members of the Board of Directors did not have any other management or permanent advisory functions or any mandates for major Swiss or foreign companies other than those mentioned in their resumes, nor did they exercise any important official duties or political mandates. A list of all mandates, as required under the Swiss Code of Obligations in the Compensation Report, can be found for the respective members of the Board of Directors on page 110.

Stipulations in the Articles of Association on the number of permissible additional activities and interests

According to the Articles of Association, members of the Board of Directors are permitted to exercise a maximum of 15 additional mandates, including up to five mandates in listed companies.

For the purposes of this rule, the term "mandate" means an activity in the senior management or executive bodies of legal entities with an economic purpose. Multiple mandates in legal entities of the same consolidated group are regarded as a single mandate. There are no restrictions on mandates in legal entities that are controlled by the company or that control the company, on mandates exercised on the instructions of the company or companies under its control, or on mandates in associations, non-profit foundations, family foundations or staff welfare foundations, unless they have an economic purpose. See also: https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

Executive activities for the company or its subsidiaries

As mentioned in his resume, Heinz O. Baumgartner was, in addition to his function as member of the Board of Directors, previously also CEO and a member of the Group Management of Schweiter Technologies AG until 30 September 2022. No other member carries out any operational function within the company, nor has any of them been a member of the Group Management of Schweiter Technologies AG or one of its Group companies in the past three years. They also do not have any business relationships with the company.

Independence

In 2024, all members of the Board of Directors are non-executive and, with the exception of Heinz O. Baumgartner, due to his aforementioned executive activity, also independent members of the Board (in accordance with Article 15 of the Swiss Code of Best Practice for Corporate Governance 2023).

Election and term of office

In accordance with the company's Articles of Association, the Board of Directors consists of three to seven members. There are no age restrictions or other restrictions on members' term of office. The members of the Board of Directors are elected individually by the General Meeting for a one-year term of office, the period between one Ordinary General Meeting and the closing of the next being deemed to constitute one year. Members are eligible for re-election. Members newly elected during a term of office are elected for the remainder of the current term of office.

The Articles of Association contain no rules which differ from the statutory provisions in relation to the appointment of the Chairman, the members of the Nomination and Compensation Committee or the independent proxy. See also:

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

INTERNAL ORGANIZATION

Allocation of tasks within the Board of Directors

The General Meeting elects a member of the Board of Directors to serve as Board Chairman. The General Meeting also elects the members of the Nomination and Compensation Committee. The term of office is one year, this being defined as the time between one Ordinary General Meeting and the closing of the next Ordinary General Meeting. Members are eligible for re-election. If the office of Chairman is vacant, the Board of Directors will appoint a Chairman for the remaining term of office. The Board of Directors constitutes itself, except for the Chairman and members of the Nomination and Compensation Committee, who are elected by the General Meeting. Heinz O. Baumgartner has been Chairman of the Board of Directors since the Annual General Meeting 2023. The Board of Directors elects a Secretary who neither needs to be a member of the Board nor a shareholder. Both the Board of Directors and its committees (Audit Committee and Nomination and Compensation Committee) meet as often as the company's business requires.

All key decisions are taken by the entire Board of Directors as a whole (in particular appointments). The main criteria when selecting candidates for nomination for election to the Board of Directors are professional experience and the relevant expertise. In addition to a balance of professional competences, the Board of Directors also pays attention to appropriate diversity.

Committees of the Board of Directors

In the 2024 reporting year, the Board of Directors had two permanent committees: the Audit Committee and the Nomination and Compensation Committee. The duration of the committee meetings depends on the issues discussed.

Audit Committee ("AC")

The Audit Committee ("AC") is composed of two members of the Board of Directors (Lars van der Haegen, Chair, and Stephan Widrig). The Board of Directors has determined that both committee members have proven experience and skills in the area of finance to enable them to fulfill their tasks.

In accordance with the organizational and business regulations, the AC supports the Board of Directors in its overall supervisory function, particularly with regard to the completeness of the financial statements, compliance with legal requirements, and the capability and performance of the internal and external auditors.

The committee assesses the appropriateness of the financial reporting, the internal control system, and the monitoring of business risks. It ensures ongoing communication with the external auditors and the internal auditors regarding the Group's financial position and business performance.

In particular, the AC has the following duties and responsibilities:

• Evaluating the external auditors, taking into account the required qualification and independence, and proposal to the Board of Directors regarding their appointment
• Evaluating the work of the internal auditors and ensuring cooperation with the external auditors
• Questioning the management, the internal auditors, and the external auditors on significant risks, contingent liabilities, and other commitments of the Group and assessing the measures taken to manage them
• Reviewing the semi-annual and annual financial statements of the company and the Group, including significant off-balance sheet items
• Discussing the results of the annual audit with the external auditors and discussing the reports of the internal auditors
• Compliance with the rules on transparency of compensation and shareholdings of the members of the Board of Directors and the Group Management

The AC holds decision-making powers in relation to all audit-specific tasks, subject to approval by the entire Board of Directors. All other key decisions are taken by the entire Board of Directors (in particular, appointments). AC meetings are usually attended by the CEO and the CFO, see also the footnotes in the table on page 82. The full Board of Directors is informed of the AC's activities following each meeting. As a rule, the AC meets three to five times per year (at least once every four months).

During the year under review, the AC held four meetings, of which one was held as a video conference. The meetings and the video conference, respectively, lasted on average two hours. The auditors attended three meetings (one meeting in each of the first, third and fourth quarter) in the year under review.

Nomination and Compensation Committee ("NCC")

In compliance with Article 23a of the Articles of Association, the General Meeting elects from among the members of the Board of Directors at least three members to serve on the Nomination and Compensation Committee ("NCC"). The term of office of the members of the NCC is one year until the closing of the subsequent Ordinary General Meeting. Members are eligible for re-election.

In accordance with the Articles of Association and the organizational regulations, the NCC (Jacques Sanche, Chair, Daniel Bossard, and Vanessa Frey) has, in particular, the following duties and responsibilities in respect of compensation matters concerning the Board of Directors and Management:

• Determining the principles for the selection of candidates for the Board of Directors and the Management and submitting proposals to the Board of Directors (for the attention of the General Meeting) regarding the composition of the Board of Directors and the Executive Board
• Proposals to the Board of Directors concerning the definition of the principles of compensation applicable to Management, including the proportion to be paid in shares and the valuation of these shares
• Proposals to the Board of Directors, for submission to the General Meeting, concerning the total amounts of compensation for the Board of Directors and Management
• Proposals to the Board of Directors concerning the individual levels of compensation for the members of the Board of Directors and Management within the respective total amount approved by the General Meeting

Proposals to the Board of Directors, for submission to the General Meeting, concerning amendments to the Articles of Association with regard to the compensation system in place for remunerating the Board of Directors and Group Management

The NCC prepares the annual Compensation Report for the attention of the Board of Directors. In addition to the work relating to compensation, the responsibilities of the NCC include succession planning in connection with changes in the Board of Directors and related nomination and election recommendations to the Board of Directors for approval by the Annual General Meeting, as well as the evaluation and succession planning of the Management:

• Submitting proposals to the Board of Directors regarding the appropriate size and balanced composition of the Board of Directors
• Developing criteria for election and re-election to the Board of Directors and the Group Management
• Evaluating potential candidates for the Board of Directors and proposal to the Board of Directors regarding the nomination of such candidates for the agenda item of the General Meeting
• Evaluating candidates for the Group Management and proposal to the Board of Directors
• Evaluating proposals of the Group Management to the Board of Directors regarding appointments and dismissals of members of the Group Management for submission to the Board of Directors
• Submitting proposals to the Board of Directors regarding the approval of agreements and employment contracts with members of the Group Management
• Reviewing succession and contingency plans with the Board of Directors and the Group Management

The Articles of Association and the organizational regulations are available via the following links: https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html and https://www.schweiter.ch/s1a293/corporategovernance/organizational-regulations.html

After every meeting, the Chairman of the NCC reports on the committee's activities to the Board of Directors. The committee meeting minutes are made available to the members of the Board of Directors. Decision-making powers in relation to compensation reside with the Board of Directors and with the General Meeting as far as total compensation amounts are concerned. As a rule, the CEO and the CFO participate in the NCC meetings in an advisory capacity. However, they recuse themselves when their own compensation is being discussed and determined. Other invited members of the Management are also not present during the part of the meeting when their own compensation is being decided.

The decision-making authority with regard to nominations lies with the entire Board of Directors and the election and re-election of members of the Board of Directors lies with the General Meeting.

As a rule, the NCC meets two to four times per year (semi-annually to quarterly). The NCC is free to call upon external consultants to address specific compensation matters.

In the year under review, the NCC held two meetings. The meetings lasted on average two hours. For details on the participation of the members of the Group Management in the NCC meetings in 2024, please refer to the footnotes in the table on page 82. As a rule, the Chairman of the Board of Directors attends the NCC meetings as a guest. As in the previous year, in 2024 the Board of Directors did not consult external advisors.

Working methods of the Board of Directors

The Board of Directors is responsible for the strategic management of the Group and for the supervision of those entrusted with its management. To this end, the Board of Directors holds meetings at least four times per year (i.e. once a quarter). Meetings last on average one day. At the Board meetings, the Management reports on the operational side of the business. In discussing business performance, the Management presents risks that have been identified and are of relevance to the business, assesses their possible impact, and presents the resulting measures. More detailed information can be found in the chapter "Risk Management" on page 134 in the Financial Report and in the Sustainability Report on climate-related issues on pages 68 to 73. In addition, individual strategy meetings are held, usually at times close to the Board of Directors' meeting. Such strategy meetings usually last half a day or one day. In these meetings, specific strategic priorities are discussed in depth. The majority of members of the Board of Directors must be present to ensure a quorum. The Board of Directors adopts resolutions by a majority of votes cast. In the event of a tie, the Chairman shall have the casting vote.

In 2024, the Board of Directors held five meetings, including a strategy meeting. In the year under review, the attendance ratio of the members of the Board of Directors was 100%. The CEO and CFO generally attend the meetings of the Board of Directors, see also the footnotes in the table on page 82.

Definition of areas of responsibility

Unless the law or the Articles of Association provide otherwise, the Board of Directors delegates operational management entirely to the Group Management. The Board of Directors exercises overall leadership, supervises, and oversees business operations. It issues business policy guidelines and ensures that it is kept regularly informed of business performance (see also section "Working methods of the Board of Directors" and the company's Articles of Association https://www.schweiter.ch/s1a127/corporate)governance/articles-of-association.html).)

The Board of Directors has in particular the following non-delegable and inalienable duties:

• Overall management of the company's business and issuing the necessary directives; hence also developing the strategic objectives, defining the means of achieving those objectives and defining business policy
• Defining the organization
• Defining accounting, financial control, and financial planning, and deciding on extraordinary individual investments, which were not approved in the budget
• Determination of the individual compensation of the members of the Board of Directors and the Group Management within the scope of the total amounts approved by the General Meeting

• Proposing to the General Meeting the total amounts of compensation to be paid to the Board of Directors and the Group Management and amendments to the Articles of Association regarding the compensation system for the Board of Directors and the Group Management

• Appointing and dismissing persons entrusted with the management of the Group and regulation on the authority to sign

• Ultimate supervision of the persons entrusted with the management of the company, specifically in view of their compliance with the law, the Articles of Association, regulations, and directives
• Preparing the Annual Report and the Compensation Report as well as making arrangements for the General Meeting and implementing the resolutions passed by the latter
• Submitting a request for a moratorium and notification of the judge in the event of over-indebtedness
• Resolution on the subsequent payment of contributions on shares not fully paid in
• Adopting resolutions on capital increases and capital reductions and resulting amendments to the Articles of Association
• Verifying compliance with legal requirements governing the appointment, election, and professional qualifications of the statutory auditor

Group Management is responsible for the day-today operations of the company in accordance with the directives issued by the Board of Directors and following the customary duty of due diligence and the provisions of the law.

At the Board meetings and the regular division meetings, Group Management reports to the Board on the following matters in particular:

• Business policy from the perspective of Group Management
• Progress of the business and financial situation of the Group
• Outlook and measures to be taken in the near future
• Development projects and status
• Extraordinary events with a substantial bearing on business
• Personnel policy and planning, information on important personnel decisions

Information and control instruments

The Board of Directors is responsible for overseeing the Group's internal control systems, which monitor the risk of inadequate business performance, but cannot rule out such a risk. These systems provide appropriate, though not absolute, security against significant inaccuracies and material losses. Group Management is responsible for identifying and assessing significant risks (see also section "Definition of areas of responsibility"). In addition to quantitative approaches and formal guidelines – which cover only part of a comprehensive risk management approach – it is also considered important to maintain a corresponding risk management culture.

In addition to a continuous process of monitoring and assessment, the Management also submits detailed monthly reports to the Board of Directors (MIS). These provide a detailed account of the volume and profitability trends (net sales, contribution margin, OPEX, EBITDA, EBIT, and net income). Deviations from the budget or from the previous year are presented in detail. Important balance sheet figures (cash and cash equivalents, and net operating assets) and headcount data are prepared on a monthly basis. Besides this information, which is prepared on a monthly basis, additional analyses of individual key figures are also provided, such as price and margin trends and currency effects. Within the scope of the annual plan, a forecast is prepared at the middle of the year and in the fourth quarter. Group Management members are consulted on individual topics.

The Audit Committee and Board of Directors identify additional topics which are taken up in the context of the internal controlling processes and subject to in-depth analysis and investigation. This is done either by means of internal audits in the relevant national subsidiaries or by consulting external specialists where necessary. The internal audit function is aligned with the values of the International Professional Practices Framework (IPPF). The Audit Committee also focuses on defining the scope and content of the external audit. Each Board member is also sent the full minutes of all Audit Committee meetings. The CEO and the CFO usually attend the meetings of the Audit Committee.

Risk management

As part of the risk assessment process, the likelihood of occurrence of risks and the potential damage are considered. In addition to financial risks, current systemic risks such as pandemics, cyber threats, political instability, supply and raw material shortages, and the possible impact of climate change are also included in the risk assessment. Based on the results of the probability of occurrence and the expected damage potential, a risk matrix is drawn up.

Further information regarding risk management can be found on page 6 in the Group Management Report and on pages 134 to 135 of the notes to the financial statements.

Internal Control System (ICS)

Schweiter Technologies has an internal control system (ICS). The ICS follows a risk-oriented approach, under which – on the basis of a risk assessment – key controls in significant internal business processes are systematically monitored with regard to existence, compliance, and documentation. All Group companies have an ICS, the scope of the ICS depends on size and risks. ICS documentation and test programs are in place for the following processes, which have been defined as financially relevant: purchasing, inventories, production, property, plant and equipment, payroll, finances, information technology, preparation of financial statements, and consolidation.

Group Controlling monitors the Group companies' ICS documentation, is responsible for companywide controls, and ensures that effective controls are performed with respect to consolidated financial statements. Furthermore, Group Controlling also ensures, on an annual basis, that suggestions for improvement and measures proposed by the external auditors and in internal audit reports are implemented. In the course of interim and annual audits, the external auditors monitor the existence and the relevant documentation of the ICS and submit a report to the Audit Committee. The scope of the annual audit is discussed yearly with the Audit Committee. The Board of Directors reviews the internal information and control systems annually regarding their effectiveness for identifying, assessing, and managing the risks associated with business operations.

GROUP MANAGEMENT (AS OF 31 DECEMBER 2024)

ROMAN SONDEREGGER Group CEO

DR. URS SCHEIDEGGER Group CFO

ROMAN SONDEREGGER

1976, Swiss citizen Group CEO

Roman Sonderegger is a member of the Group Management, and since 1 October 2022, he has been CEO of Schweiter Technologies AG.

After occupying a number of management positions in supply chain management and working as a consultant at the Boston Consulting Group, Roman Sonderegger was employed in various roles at the Bühler Group from 2010 to 2022, including as Head of Sales & Services Operations Group and Managing Director of Bühler Southern Africa. From 2019 to March 2022, he was Head of Business Unit Wheat & Rye and Customer Service Milling Solutions of the Bühler Group.

Roman Sonderegger has a master's degree in Industrial Management and Manufacturing from the Swiss Federal Institute of Technology (ETH) Zurich.

DR. URS SCHEIDEGGER

1969, Swiss citizen Group CFO

Urs Scheidegger is a member of the Group Management, and since 1 October 2023, he has been CFO of Schweiter Technologies AG.

He began his career at McKinsey & Company and since 2002 had worked in a variety of roles at Schindler Group, including eight years in Asia in various financial management functions. From 2011, he was in charge of corporate controlling at Schindler Group, before becoming Group CFO, a role in which he served from 2018 to 2022.

Urs Scheidegger holds a master's degree in business administration (lic. oec.) and a doctorate in economics (Dr. oec.) awarded by the University of St. Gallen, Switzerland.

Other activities and vested interests

During the year under review, Roman Sonderegger, CEO, was elected as a member of the board of directors of AMAG Group AG; while Urs Scheidegger, CFO, had no further management or permanent advisory functions or mandates from major Swiss or foreign companies. Both members of the Group Management did not exercise any important official duties or political mandates in 2024.

Stipulations in the Articles of Association on the number of permissible additional activities and interests

Members of Group Management may exercise a maximum of ten additional mandates, including up to two mandates in listed companies.

For the purposes of this rule, the term "mandate" means an activity in the senior management or executive bodies of other legal entities with an economic purpose. Multiple mandates in legal entities of the same consolidated group are regarded as a single mandate. There are no restrictions on mandates in legal entities that are controlled by the company or that control the company, on mandates exercised on the instructions of the company or companies under its control, or on mandates in associations, non-profit foundations, family foundations or staff welfare foundations, unless they have an economic purpose. See also:

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

Management contracts

There are no management contracts.

Compensation, shareholdings, and loans

Details on compensation, shareholdings, and loans including the statutory rules regarding the principles of compensation, participation plans, loans, credits, and pension benefits are set out in the separate Compensation Report on pages 100 to 117 of this Annual Report.

SHAREHOLDERS' PARTICIPATION RIGHTS

Restriction of voting rights and representation

Each registered share entitles shareholders, who have been registered in the share register, to one vote. Pursuant to Article 3bis of the Articles of Association, shareholders or usufructuaries are recognized by the company if they are entered as such in the share register with their surname and first name, place of residence, address, and nationality (legal entities with company name, domicile, and registered office).

Each shareholder registered in the share register may represent his or her votes at the General Meeting of Shareholders himself or herself or have them represented by a third party who does not need to be a shareholder. The representative must identify himself or herself by written power of attorney. In addition, any shareholder may have his or her shares represented at the General Meeting of Shareholders by the independent proxy. Regarding the provisions of the Articles of Association concerning nominee registrations, reference is made to the explanations on page 79 chapter "Share Register and Limitations on Transferability and Nominee Registrations" and Article 3bis of the Articles of Association.

In the reporting year 2024, the Board of Directors did not reject any applications for registration in the share register and did not grant any exceptions.

Pursuant to Article 16 of the Articles of Association, a restriction on the transferability of registered shares requires a resolution of the General Meeting of Shareholders passed by at least twothirds of the votes represented and a majority of the par value of the shares represented:

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

Independent proxy

The General Meeting elects the independent proxy for a term of office of one year. He or she is eligible for re-election. Pursuant to Article 14a of the Articles of Association, the independent proxy is obliged to exercise voting rights in accordance with instructions. If he or she has not received any instructions, he or she shall abstain from voting. The Board of Directors prepares forms which must be used to issue powers of attorney and instructions. Proxies and instructions may only be issued for the upcoming General Meeting. They may also be issued electronically. If the General Meeting does not have an independent proxy, the Board of Directors shall appoint one for the next General Meeting. See also:

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

The Annual General Meeting held on 10 April 2024 re-elected Proxy Voting Services GmbH, Zurich, management by Dr. René Schwarzenbach, to serve as the independent proxy for a one-year term of office.

Annual General Meeting 2024

961 643 registered shares, corresponding to 67.16% of the share capital, were present at the Annual General Meeting held on 10 April 2024, in Zug, Switzerland. The Annual General Meeting took place with physical presence of shareholders. As an alternative to attending in person, shareholders also had the option of issuing a written or electronic proxy (through ShApp platform) with instructions to the independent voting representative.

The shareholders approved all proposals of the Board of Directors at the Annual General Meeting 2024 with a clear majority; the minutes can be downloaded from the corporate website: https://www.schweiter.ch/s1a134/investors/annua l-general-meeting.html

Annual General Meeting 2025

For the upcoming Annual General Meeting on 9 April 2025, shareholders who are registered in the share register are entitled to vote. In addition to physical attendance or voting by third parties or by the independent proxy, the company again offers shareholders the possibility of voting by proxy in electronic form via the ShApp platform (www.shapp.ch). The relevant registration and voting procedure using this platform will be explained in the invitation to the General Meeting.

Statutory quorums

The General Meeting passes its resolutions and conducts its elections by a majority of the votes cast, excluding blank and invalid votes, unless otherwise provided by law or the Articles of Association. In the event of a tie, a resolution shall be deemed not to have been passed, and elections shall be decided by lot.

Pursuant to Article 16 of the Articles of Association, the following resolutions must by law be passed by at least two thirds of the votes represented and a majority of the par value of the shares represented:

• 1. Amendment of the corporate purpose
• 1. Introduction of shares with increased voting powers
• 1. Restriction of the transferability of registered shares
• 1. Introduction of conditional capital or introduction of a capital band
• 1. Increase of capital out of equity, against contribution in kind or by offsetting against a claim and the granting of special benefits
• 1. Restriction or cancellation of subscription rights
• 1. Change of the currency of the share capital
• 1. Introduction of the casting vote of the Chairman at the General Meeting
• 1. Delisting of the company's equity securities
• 1. Transfer of the domicile of the company
• 1. Introduction of an arbitration clause in the Articles of Association
• 1. Dissolution of the company

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

Convening the General Meeting and inclusion of items on the agenda

The General Meeting is convened by the Board of Directors, or if necessary, by the auditors. The General Meeting must be convened by publication of a notice in the Swiss Official Gazette of Commerce at least 20 days before the date on which the meeting is due to be held. Shareholders registered in the share register will also receive the invitation by letter.

The Annual General Meeting takes place each year within six months of the end of the financial year. The right to propose items for the agenda of the General Meeting is governed by the provisions of Swiss company law.

Extraordinary General Meetings are to be called as frequently as is necessary, particularly in the cases provided by the law. The convening of a General Meeting may also be requested in writing by one or more shareholders representing at least 5% of the share capital or voting rights, specifying the agenda item and the proposals. In this case, the Board of Directors must convene the General Meeting within a reasonable period of time, but at the latest within 60 days. Shareholders representing shares with a nominal value of at least 0.5% of the share capital or voting rights may request that a particular item or that motions relating to items are added to the agenda. Such requests must be submitted to the Board of Directors in writing at least 45 days in advance of the General Meeting, specifying the subject to be discussed and the proposals together with a brief explanation.

The date, time, nature, and place of the General Meeting, the items to be discussed, the motions of the Board of Directors and of the shareholders who have requested that the General Meeting be held or that an item be placed on the agenda, together with a brief statement of the reasons for the motions, and the name and address of the independent proxy shall be published, when such a meeting is convened.

At least 20 days prior to the Ordinary General Meeting, the annual financial statements with the auditor's report and the management report of the Board of Directors as well as the compensation report including the auditor's report and the sustainability report shall be made accessible electronically to the shareholders. If the documents are not accessible electronically, each shareholder may request that they be sent to him or her in good time.

No resolutions may be passed on motions relating to items on the agenda that have not been duly announced, with the exception of motions to convene an Extraordinary General Meeting, to conduct a special investigation and to elect an auditor in response to a request from a shareholder.

No prior announcement is required for the submission of motions within the scope of the items on the agenda or for negotiations without the adoption of resolutions.

The venue of the General Meeting and the form in which it is held shall be determined by the Board of Directors. The place of the meeting may also be abroad if the Board of Directors designates an independent proxy in the notice convening the meeting.

According to Article 12 of the Articles of Association, the Board of Directors may provide that shareholders who are not present at the venue of the General Meeting may exercise their rights electronically. Instead, the Board of Directors may also waive the determination of a venue and order to hold a purely virtual General Meeting if the Board of Directors designates an independent proxy in the notice convening the meeting. See also:

https://www.schweiter.ch/s1a127/corporategovernance/statuten.html

In the case of a purely virtual General Meeting, the Board of Directors must, in accordance with Article 701e of the Swiss Code of Obligations, ensure, before the meeting is convened, that:

• any falsification of the votes is prevented;
• the identity of the participants can be established;
• the votes of the General Meeting can be transmitted immediately;
• each participant can make motions and take part in the discussion; and,
• the voting results cannot be falsified.

The Annual General Meeting on 9 April 2025 is planned with physical attendance by the shareholders at the General Meeting, in Zug, Switzerland.

Entries in the share register

A share register is maintained for the registered shares. In accordance with Article 3bis of the Articles of Association, anyone whose name, address, and nationality (in the case of legal entities, the registered office) are entered in the share register is recognized as a shareholder or beneficiary. Entry in the share register as a shareholder with voting rights is subject to the approval of the Board of Directors, which may delegate this authority in whole or in part. For administrative reasons, the share register is closed ten days before the General Meeting. Shareholders who sell their shares before a General Meeting are no longer entitled to vote for these shares. The effective closing will be stated in the invitation to the Annual General Meeting on 9 April 2025. The share register is held by areg.ch AG, Hägendorf, Switzerland.

CHANGE OF CONTROL AND DEFENSE MEASURES

Duty to make an offer

An acquirer of shares of the company is not obliged to submit a public purchase offer pursuant to Articles 135 and 163 of the Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading (FinMIA) (Article 4 of the Articles of Association "Opting out"), see also:

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html

Clauses on changes of control

No clauses on changes of control are in place for members of the Board of Directors or Management or in favor of other senior executives holding a key function within the Group.

STATUTORY AUDITOR

Duration of mandate and term of office of the auditor in charge

The General Meeting elects the statutory auditor, who must be independent in accordance with the provisions of Article 728 of the Swiss Code of Obligations. The statutory auditor is elected for a one-year term of office ending on the conclusion of the General Meeting at which the statutory auditor's report is to be submitted. The statutory auditor is eligible for re-election. In accordance with Article 730a of the Swiss Code of Obligations, the auditor in charge rotates every seven years.

Since 2021, KPMG AG, Zug, is the statutory auditor of Schweiter Technologies AG. At the Annual General Meeting on 10 April 2024, KPMG AG was re-elected for a one-year term, as proposed by the Board of Directors. Since 1 April 2021, the auditor in charge has been Toni Wattenhofer of KPMG AG.

Auditing fee

The following fees were paid to the auditing companies in financial year 2024:

(in 1000 CHF)	2024	2023
Auditing services1	845	817
Audit-related services	9	29
Total	854	846

¹ Auditing the consolidated financial statements, the holding company statements, and the financial statements of the individual Group companies, of which CHF 249 000 is attributable to third-party auditors (in 2023: CHF 233 000)

Additional fees

In financial year 2024, KPMG AG was paid additional fees in the total amount of CHF 83 000, thereof CHF 82 000 for tax advice and CHF 1 000 for other services (total amount in 2023: CHF 73 000).

Supervisory and control instruments vis-à-vis the auditor

Auditing services are defined as standard tasks in an audit, to prepare reports on the statutory annual financial statements, and to be able to provide an opinion on the consolidated financial statements.

The Audit Committee, which met the auditors three times during the 2024 financial year, is responsible for supervising and monitoring the audit and regularly reporting back to the Board of Directors as a whole. The statutory auditor prepares a comprehensive report on the outcome of the auditing activities on an annual basis. The statutory auditor's report is supported by an accompanying annual management letter and a comprehensive report to the Board of Directors.

The auditors may not be members of the Board of Directors or company employees, nor may they carry out any other work for the company which would be incompatible with the audit assignment. They must be independent of the Board of Directors and of any shareholding of more than 5% of voting rights. The auditors must adhere to the independence guidelines of their profession. The Audit Committee verifies the statutory auditor's qualifications on an annual basis as part of its supervisory and monitoring functions. Particular emphasis is placed on the following criteria: independence of the auditors and an understanding of the Group's business activities and the specific business risks it faces.

With respect to the year under review, the Audit Committee and Board of Directors have concluded that the independence of the auditor has been fully ensured.

INFORMATION POLICY

Schweiter Technologies maintains a regular and open dialog with all shareholders and the capital market.

In addition to the annual financial statements, Schweiter Technologies AG publishes its business results in a Semi-Annual Report. In compliance with the ad hoc publicity guidelines contained in the Listing Rules of SIX Exchange Regulation, Schweiter Technologies AG also discloses pricesensitive information.

The company's official publication is the Swiss Official Gazette of Commerce (SOGC, www.sogc.ch). Information on disclosure notices from major shareholders can be found at:

https://www.serag.com/en/resources/notifications -market-participants/significant-shareholders.html

Information on transactions effected by members of the Board of Directors or Management is available at:

https://www.ser-ag.com/en/resources/ notifications-market-participants/managementtransactions.html

Any interested party may request to be placed on the Schweiter Technologies AG e-mail distribution list to receive, free of charge, price-sensitive information in a direct and timely manner. All information and the online registration form to be placed on the e-mail distribution list can be found at: www.schweiter.com (direct link:

https://www.schweiter.ch/contact-order-report).

The regular presentation of company facts and figures is an inherent part of Schweiter's communication culture. Media and analyst conferences for investors, analysts, and journalists are held to present specific company events (e.g. Capital Markets Day) when publishing annual and/or semi-annual results. These presentations are available on the company's website at:

https://www.schweiter.ch/s1a200/investors/financ ial-reports-presentations.html

At the General Meeting, the Board of Directors and Group Management provide information on the annual financial statements and the company's business performance, and answer shareholders' questions.

The financial reports (Annual Reports, Semi-Annual Reports) and Sustainability Reports are available on the company's website, and print versions can be ordered free of charge or electronic versions can be downloaded via the following link:

https://www.schweiter.ch/s1a200/investors/financ ial-reports-presentations.html

Media releases, classified under "All" and "Ad hoc press releases", are available via the following direct link:

https://www.schweiter.ch/s1f3/media-releases/

The direct links to the company's Articles of Association (in German) and the Organizational and Business Regulations of the company can be found at:

https://www.schweiter.ch/s1a127/corporategovernance/articles-of-association.html and:

https://www.schweiter.ch/s1a293/corporategovernance/organizational-regulations.html

The company's Code of Conduct is available via the following link:

https://www.schweiter.ch/s1a203/corporategovernance/code-of-conduct.html

The address for investor relation matters is:

Schweiter Technologies AG Dr. Urs Scheidegger, Group CFO Hinterbergstrasse 20 6312 Steinhausen, Switzerland T +41 41 757 77 00

investor@schweiter.com www.schweiter.com

28 February 2025: Publication of annual results 2024 and media and analyst conference results 2024

9 April 2025: Annual General Meeting

25 July 2025: Publication of semi-annual results 2025 and media and analyst conference on semiannual results 2025

<-- PDF CHUNK SEPARATOR -->

The entire financial calendar with important dates is available at:

https://www.schweiter.ch/s1a13/investoren/finanz kalender.html

BLACKOUT PERIODS

Schweiter Technologies AG reviewed and adapted its Management Transactions and Insider Trading Policy in 2024 and has defined the following rules on trading blackout periods in its Principles on Management Transactions and Insider Trading:

From the end of a reporting period (31.12. and 30.06.) to the publication of the company's annual and semi-annual results (trading blackout periods), no securities transactions may be carried out, nor may trading in the company's securities be recommended to other persons. The dates of publication of all financial results are published on the website:

https://www.schweiter.ch/s1a13/investors/financi al-calendar.html

Trading blackout periods also include the period between the internal notification of information leading to "ad hoc publicity" (e.g. profit changes, important personnel changes, company takeovers, strategy updates, etc.) and the announcement of this information.

The trading blackout periods apply to all members of the Board of Directors and Group Management of Schweiter Technologies AG as well as to persons who, by virtue of their shareholding or activity, have direct access to confidential information relevant to the share price.

No exceptions are granted. There was no deviation from this rule either in the reporting year 2024 or in the previous years.

COMPENSATION REPORT

The Compensation Report was prepared in compliance with the SIX Exchange Regulation on Corporate Governance and the provisions of the Swiss Code of Obligations.

Introduction	100
Compensation policy – Board of Directors	102
Compensation policy – Group Management	103
Compensation to governing bodies in 2024	106
Compensation Governance	111
Report of the statutory auditor	115

COMPENSATION REPORT

INTRODUCTION

The present Compensation Report contains information on the compensation policy, the compensation programs, and the procedure for determining the compensation of the Board of Directors and Group Management of Schweiter Technologies AG. It also provides in-depth information on the compensation awarded in the financial year 2024.

This Compensation Report has been prepared on the basis of the following regulatory provisions:

• Swiss Code of Obligations "Remuneration of companies whose shares are listed on the stock exchange" (dated 9 February 2023)
• Corporate Governance Directive of SIX Exchange Regulation (dated 29 June 2022)
• "Swiss Code of Best Practice for Corporate Governance" of economiesuisse (version of 2023)
• Articles of Association of the company (dated 4 April 2023)
• Organizational and Business Regulations of the company (dated 13 December 2022)

The compensation programs for the Board of Directors and Group Management are reviewed and assessed by the Nomination and Compensation Committee at regular intervals in order to ensure that they are appropriate and in accordance with the interests of the shareholders.

The structure of the compensation model for members of the Board of Directors was adjusted with effect from the 2023 Annual General Meeting, and also applied in the 2024 reporting year. Compensation for the Board of Directors consists of two non-performance-based components, a short-term component (including expense allowances) paid out in cash and a long-term share-based component with a vesting period of three years. The amount of the fees for the members of the Board of Directors remained unchanged in 2024 compared to the previous year.

At the beginning of 2024, the Nomination and Compensation Committee reviewed the short- and the long-term variable compensation of the Executive Board, whereby the structure of the compensation model was maintained compared to the previous year. Since the 2022 financial year, the individual targets for the short-term variable compensation of the members of the Group Management also include ESG criteria (Environmental, Social, and Governance); and the vesting period for the share-based compensation in the short-term variable incentive is three years. In 2024, the Nomination and Compensation Committee proposed a new Long-term Incentive plan (LTI 2024–2026).

The Board of Directors has essentially confirmed the existing rules for the year 2024 and approved the new Long-term Incentive plan:

• Payment of the short-term variable compensation of both, the CEO and the CFO, in cash and restricted share units; this rule has applied to both members of the Group Management in connection with the CFO change since 2023
• Malus and clawback clauses ("clawback") on the share-based short-term variable compensation
• New variable Long-term Incentive plan (LTI 2024–2026) for members of the Group Management for a performance period of three financial years each in the form of deferred cash compensation

In accordance with the Articles of Association, the Nomination and Compensation Committee performed its regular activities in 2024, such as setting the performance objectives for the members of Group Management at the beginning of the year, evaluating the performance achievement at year-end, determining the compensation of the members of the Board of Directors and of Group Management, preparing the Compensation Report as well as the say-on-pay votes for the Ordinary General Meeting.

As in previous years, the Compensation Report 2024 will be submitted to a consultative vote at the Ordinary General Meeting on 9 April 2025. Shareholders will also be asked to vote on the maximum aggregate compensation to be awarded to the Board of Directors for the 2025–2026 term and on the maximum aggregate compensation of Group Management for the financial year 2026.

Compensation overview Board of Directors

(in CHF)	2024	2023
Number of members	7	7
Aggregate compensation	1 020 000	1 116 000
Maximum aggregate compensation amount approved by AGM1	1 200 000	1 200 000

¹ Maximum aggregate compensation for the board term from one ordinary AGM to the next

Compensation overview Group Management

(in CHF)	2024	2023
Number of members	21	31
Aggregate compensation	1 834 000	1 720 0002
Maximum aggregate compensation amount approved by AGM	3 000 000	3 000 000

¹ In 2024, Group Management comprised two members: Roman Sonderegger, CEO, and Urs Scheidegger, CFO. In 2023, it comprised three members for the period of 1 September 2023 until 30 September 2023.

Compensation policy

The objective of the compensation policy applicable to the Board of Directors is to attract qualified members with the required expertise and relevant experience, as well as to reinforce their focus on the long-term strategy of the company and their independence from Group Management in exercising their supervisory duties.

The objective of the compensation policy for Group Management is to attract and motivate qualified executives with the required expertise and relevant experience and to develop a long-term working relationship with them using simple, transparent, and attractive compensation programs. The compensation policy is built along the following principles:

Compensation principles

ALIGNMENT WITH BUSINESS STRATEGY PERFORMANCE ORIENTATION "PAY FOR PERFORMANCE" Compensation programs support the long-term and sustainable success of the company and they promote the company values. Executives are rewarded for business success and their individual contributions. Further, they have the opportunity to participate in the company's long-term success. MARKET COMPETITIVENESS SIMPLICITY Compensation is in line with market practice and appropriate. Compensation programs are simple and transparent.

² CFO change in 2023: Urs Scheidegger has served as CFO and member of the Group Management of Schweiter Technologies AG since 1 October 2023. From 1 September 2023 (joining Schweiter Technologies AG) until 30 September 2023, he served as Designated CFO and was also a member of the Group Management. His compensation related to four months in the financial year 2023. The former CFO was member of the Group Management until 30 September 2023; his compensation as former CFO related to nine months in 2023.

COMPENSATION POLICY – BOARD OF DIRECTORS

The compensation of the members of the Board of Directors reflects the responsibility and complexity of their respective function, the professional and personal requirements placed on them, and the expected time required to fulfill their duties.

In line with the principles mentioned above, members of the Board of Directors receive fixed compensation only, without any performance-related component, above all to ensure their independence. With the aim of strengthening their focus on the long-term strategy, compensation for the various responsibilities is split into a cash component (including expense allowances) and share-based compensation. This compensation structure has been in place since the 2023 Annual General Meeting (until then, the Board of Directors' fees (including expense allowances) were paid out exclusively in cash).

The compensation is awarded for the term of office, which is from one Ordinary General Meeting to the next. It is paid at the end of the term, with the share-based compensation subject to a vesting period of three years. The shares are purchases on the stock market; therefore, this does not result in a future dilution of share capital or profit for the company.

The following table shows the individual components of the compensation of the members of the Board of Directors that have been applied since the 2023 Annual General Meeting. The total amount of fees 2024 remained unchanged compared to the previous years.

Board and committee fees

Function		Compensation components in CHF1	Total annual fee in 2024 in CHF1, 3	Total annual fee in 2023 in CHF1, 3
	Cash compensation	Share-based compensation2
Board chairman	100 000	100 000	200 000	200 000
Board member	55 000	55 000	110 000	110 000
Committee chair	10 000	10 000	20 000	20 000
Committee member	5 000	5 000	10 000	10 000

• ¹ The amounts are gross figures, cash compensation including expense allowances.
• ² Vesting period of three years.
• ³ Total annual fee for the Chairman of the Board of Directors has remained unchanged at CHF 200 000 since 2011. Total annual fee for the members of the Board of Directors, for the chair and committee work, remained unchanged since 2021.

Members of the Board of Directors are generally not insured under the occupational pension fund; in the reporting year 2024, there were two exceptions, as in the previous year. One exception applied to the Chairman of the Board of Directors, Heinz O. Baumgartner. He serves as Chairman of the Board since the Annual General Meeting 2023 and was insured under the occupational pension plan as CEO and member of the Group Management until 30 September 2022. After leaving the Group Management, he continues to be insured under the pension fund. The second exception applied to Beat Siegrist; he served as Chairman of the Board until the Annual General Meeting 2023. Due to his former employment as CEO of the company, he was offered to remain insured in an external pension fund where the company insures members of the Group Management against risks of death and disability. Even after his resignation as Chairman of the Board of Directors, he continues to be insured under the pension fund. None of the other members of the Board of Directors is insured under the pension fund, and such coverage is not available for members of the Board of Directors who are not former or current member of the Group Management of the company.

Members of the Board may be remunerated separately at market conditions for additional services (beyond their function on the Board of Directors) that are provided to the company or other Group companies. Such services, and the related compensation, must be approved by the Board of Directors in advance. Such compensation is subject to shareholders' approval at the Annual General Meeting.

COMPENSATION POLICY – GROUP MANAGEMENT

In line with the principles of alignment with the business strategy and pay-for-performance, a significant portion of the compensation of Group Management consists of variable incentives based on performance.

The compensation includes fixed compensation elements, such as base salary and benefits, as well as variable compensation elements, such as performance-based short-term compensation and long-term incentives. According to the Articles of Association (version dated 4 April 2023), the variable compensation is capped at 200% of the fixed compensation.

The elements of compensation for Group Management are summarized in the table below.

Overview of elements of Group Management compensation

	Purpose	Instrument	Performance indicators	Performance period	Drivers	Max. payout opportunity1
Fixed base salary	Attract, retain, motivate	Cash payments	–	–	Position, skill set	–
Benefits	Protect against risks	Insurances, retirement plan	–	–	Local legislation and market practice	–
Short-term variable incentive	Pay for annual performance	Bonus in cash and shares, 50% each (CEO & CFO2)	EBIT; EBIT margin (CEO); individual objectives (including ESG criteria)3	1 year	Financial and individual performance	145% of target
Long-term variable incentive	Reward for sustainable value creation	Deferred cash	EBIT; EBIT margin (3A Composites)	3 years	Company and/or division performance	150% of target

¹ Overall cap on variable compensation at 200% of fixed compensation

Fixed base salary

The fixed base salary is determined at the discretion of the Board of Directors based on the scope and responsibilities of the respective position and the incumbent's qualifications, skill set, and experience. It is paid in cash, typically monthly.

Benefits

Benefits consist mainly of retirement, insurance and healthcare plans that are designed to safeguard employees and their dependents against the financial consequences of retirement, illness, occupational disability, and death. All members of Group Management have a Swiss employment contract and participate in an external pension fund. In addition, for the period between early retirement and the statutory pensionable age, members of Group Management may receive a bridging pension up to a maximum

² Rule has also applied to the CFO since September 2023

³ Since 2022, the rules for setting individual targets have also included criteria relating to ESG (Environmental, Social, and Governance).

amount of the annual fixed salary of the last year of employment prior to early retirement. Members of Group Management do not receive any other benefits.

Short-term variable incentive

The short-term variable incentive (STI) rewards both the financial results of the company and the individual contribution of the executive in a given financial year.

The performance objectives for the STI for each of the members of Group Management are set at the beginning of the year by the Board of Directors, based on a proposal by the Nomination and Compensation Committee.

The financial objectives are based on the Group EBIT and, in addition for the CEO, on the Group EBIT margin. These performance indicators were chosen as they reflect the Group's business strategy of profitable growth. A target corresponding to the expected performance is defined for each indicator. There is no payout for a performance below 80% of the target (threshold), and the payout is capped for performance above 115% of the target (ceiling).

The individual performance objectives are set annually as part of the annual MBO (management by objectives) process. They consist primarily of financial and economic performance objectives and, since 2022, also of ESG criteria (Environmental, Social, and Governance). These performance objectives are based on the manager's specific function in the context of the execution of the overarching business strategy. The payout is capped for performance above 100% of the target (ceiling).

The target and maximum payout levels of the STI for the members of Group Management, as well as the performance indicators and their weighting, are illustrated in the table below. The target, threshold, and ceiling of the effective performance objectives are not disclosed as such disclosure would provide insights into the forward-looking strategy of Schweiter Technologies and thus create a competitive disadvantage for the company.

STI: performance objectives, target, and maximum payout

	Objectives	Weight	Target STI	Maximum STI
	EBIT	38%
CEO	EBIT margin	38%	36% of fixed salary	145% of target
	MBO	24%
OTHER MEMBERS OF GROUP MANAGEMENT	EBIT	79%		145% of target
	MBO	21%	56% of fixed salary

The achievement of the financial and individual objectives is assessed at the end of the financial year and the STI payout determined accordingly.

In the event of voluntary resignation by the member of Group Management, there is no entitlement to the portion of the STI related to the EBIT performance. However, the Board of Directors may grant exceptions. The MBO portion of the STI may be paid based on the performance achieved at the termination date. In case of termination by the company, the Board of Directors may, at its own discretion, grant the STI (EBIT and MBO) pro-rata on the basis of the performance achieved at the termination date.

The STI is paid in cash in March of the following year. For the CEO, and since September 2023 also for the CFO, the STI is set at 50% in cash and 50% in shares. Since 2022, the vesting period for the sharebased compensation has been three years (previously one year). In case of voluntary resignation of the CEO or the CFO, or termination for good reasons during the vesting period, the shares are forfeit. However, the Board of Directors may grant vesting in whole or in part at its own discretion, e.g. if the resignation is made by Schweiter Technologies. In case of retirement, the shares are subject to a pro-rata vesting at the regular vesting date. In case of death or disability, the shares are subject to an accelerated pro-rata vesting.

The share portion of the STI is subject to clawback and malus provisions that allow the company to reduce the number of shares to vest (malus) and/or to recover shares already allocated (clawback) in case of a material restatement of the financial accounts of the company or in case of violation of law or internal rules

The shares for the share portion of the STI for the CEO and the CFO are purchased on the stock market. Therefore, this share program does not result in a future dilution of share capital or profit for the company.

Long-term variable incentive

The Board of Directors may grant a long-term incentive award (LTI) as a long-term oriented component of compensation for members of Group Management and selected key employees. The purpose of the LTI is to strengthen the identification with the Group and to link compensation with sustainable value creation

In 2024, the Board of Directors decided to grant a new LTI award for members of Group Management and selected key employees within the Group. The new LTI covers again a three-year performance period from 2024 to 2026.

The LTI payout depends on the achievement of performance conditions and on continuous employment until the payout date.

The performance conditions of the LTI 2024–2026 are cumulative EBIT and EBIT margin (each weighted 50%) of the 3A Composites division over the three-year period. EBIT and EBIT margin were chosen because they reflect the business strategy of profitable growth; they will be measured on the 3A Composites division, which is the only operational division of the Group.

For each objective, a target level of expected performance, a threshold level (below which there is no payout) and a ceiling (above which the payout is capped at 150% of target) are determined. The level of payout between threshold, target and ceiling is calculated by linear interpolation. Performance targets (including thresholds and ceilings) cannot be adjusted during the term of the plan.

LTI 2024-2026: targets

	Threshold 1 (50% payout)	Target (100% payout)	Ceiling (150% payout)
CUMULATIVE EBIT OF 3A COMPOSITES DIVISION (IN CHF)	75% of target	100% of target	125% of target
EBIT MARGIN OF 3A COMPOSITES DIVISION (AS A % OF SALES)	Target minus 1.5% points	Target	Target plus 1.5% points

^&lt;sup>1 Below threshold: 0% payout

LTI 2024-2026: performance objectives, target, and maximum payout

	Objectives	Weight	Target LTI	Maximum LTI
CEO 1	EBIT		92% of fixed salary	150% of target
OTHER MEMBERS OF GROUP MANAGEMENT 1	EBIT margin (3A Composites)	50%	134% of fixed salary	150% of target

The two members of the Group Management, Roman Sonderegger, CEO, and Urs Scheidegger, CFO, are participating in the LTI 2024–2026.

The target and maximum payout levels of the LTI for the members of Group Management, as well as the performance indicators and their weighting, are illustrated in the table above.

The target, threshold and ceiling of the performance objectives are not disclosed as such disclosure would provide insights into the forward-looking strategy of Schweiter Technologies and thus create a competitive disadvantage for the company. The achievement level for each performance objective will be measured at the end of the performance period. The LTI will only be paid out in cash in March 2027 depending on the achievement of the performance targets, if the defined performance targets have been met at the end of the performance period.

Employment agreements

Employment agreements with the members of Group Management are, in principle, agreed for an unlimited term. The notice period may not exceed 12 months. Where, by way of exception, employment agreements have a fixed term, this may not exceed one year. Employment agreements do not contain clauses on change of control or non-competition clauses.

COMPENSATION TO GOVERNING BODIES IN 2024

This section has been audited by the statutory auditors in accordance with Article 728a section 1 para. 4 of the Swiss Code of Obligations.

Compensation of the Board of Directors

The following tables show the compensation paid to members of the Board of Directors for 2024 and 2023. Since the 2021 Annual General Meeting, the Board of Directors has comprised seven members. As explained in the section "Compensation Policy – Board of Directors" on page 102, the fees for the members of the Board of Directors were adjusted and increased for the last time in 2021, the Chairman's fee remained unchanged since 2011. Since the 2023 Annual General Meeting, the Board compensation is split into a cash component (including expense allowances) and share-based compensation.

The shares relating to the share-based compensation are usually allocated at a date after the approval of the financial statements by the Annual General Meeting of the following year. The share allocation for the share-based compensation 2023 took place at the volume-weighted average share price of the five trading days on SIX Swiss Exchange following the Annual General Meeting 2024 (i.e. at CHF 455.60 per share). The resulting number of shares was allocated to each member of the Board of Directors on 30 April 2024. From the date of the allocation of these shares, they have a vesting period of three years.

In 2024, no member of the Board of Directors received compensation for additional consulting services. In 2023, Heinz O. Baumgartner received a compensation for additional consulting services, see table "Compensation of the Board of Directors in 2023".

Compensation of the Board of Directors in 2024 (audited)

(in CHF 1000s)1	Function	Board fee (cash)	Board fee (share based)2	Board fee total	Other compen sation	Benefits3	Total
Heinz O. Baumgartner	Chairman	100	100	200	0	33	233
Daniel Bossard4	Member	60	60	120	0	8	128
Vanessa Frey4	Member	60	60	120	0	8	128
Jacques Sanche4	Member	65	65	130	0	8	138
Beat Siegrist	Member	55	55	110	0	17	127
Lars van der Haegen5	Member	65	65	130	0	8	138
Stephan Widrig5	Member	60	60	120	0	8	128
Total compensation for Board of Directors		465	465	930	0	90	1 020

• ¹ The amounts are gross figures; cash compensation including expense allowances
• Share-based board fee for 12 months (in 2023 for nine months). The allocation of the shares will be based on the volume-weighted average share price on SIX Swiss Exchange on the five trading days following the AGM 2025. The resulting number of shares will have a vesting period of three years following the date
• of the allocation. 3 Employer's contribution to social insurance, for Heinz O. Baumgartner (Chairman) and Beat Siegrist (member of the Board of Directors) to the pension fund as well. In 2023, benefits were higher mainly due to the change of Chairmanship and other compensation for one member of the Board of Directors.
• ⁴ Member of the Nomination and Compensation Committee
• ⁵ Member of the Audit Committee

Compensation of the Board of Directors in 2023 (audited)

(in CHF 1000s)1	Function	Board fee (cash)	Board fee (share based)2	Board fee total	Other compen sation	Benefits3	Total
Heinz O. Baumgartner4, 5	Chairman	102	75	177	63	58	298
Daniel Bossard6	Member	75	45	120	0	8	128
Vanessa Frey6	Member	75	45	120	0	8	128
Jacques Sanche6	Member	81	49	130	0	9	139
Beat Siegrist7	Member	91	42	133	0	23	156
Lars van der Haegen8	Member	81	49	130	0	9	139
Stephan Widrig8	Member	75	45	120	0	8	128
Total compensation for Board of Directors		580	350	930	63	123	1 116

• ¹ The amounts are gross figures; cash compensation including expense allowances
• Share-based compensation since AGM 2023; vesting period for shares three years; the allocation of the
• shares is based on the volume-weighted average share price on the five trading days following the AGM. 3 Employer's contribution to social insurance, for Heinz O. Baumgartner (Chairman) and Beat Siegrist (member of the Board of Directors) to the pension fund as well
• 4 Chairman since AGM 2023
• ⁵ Under his employment contract as CEO ending on 31 March 2023, he was paid a consulting fee of CHF 63 000 (excluding pension fund contributions) for the period from January to the end of March 2023 (end of contract) in addition to his compensation as a member of the Board of Directors. 6 Member of the Nomination and Compensation Committee
• ⁷ Chairman until AGM 2023; the compensation is composed proportionately of the compensation as Chairman (1 January 2023 until AGM 2023) and as member of the Board of Directors (AGM 2023 until
• 31 December 2023). 8 Member of the Audit Committee

The reported compensation of the Board of Directors for the 2024 financial year is allocated pro-rata to the two respective terms of office as follows:

Compensation of the Board of Directors in 2024 (audited)

(in CHF 1000s)
Pro-rata 1.1.2024 – 10.4.2024	251
Pro-rata 11.4.2024 – 31.12.2024	769

The total maximum compensation amount of CHF 1 200 000 as approved by the Annual General Meeting 2024, which may be paid to the Board of Directors for the term of office from the 2024 Annual General Meeting to the 2025 Annual General Meeting, was therefore not exceeded during the portion of the term of office up to the cut-off date of this Annual Report (11 April 2024–31 December 2024). A conclusive assessment for the entire term of office will be included in the Compensation Report 2025.

The total compensation of the Board of Directors for the term of office from the 2023 Annual General Meeting to the 2024 Annual General Meeting was CHF 1 020 000 (for seven members of the Board of Directors). The total maximum compensation amount of CHF 1 200 000 as approved by the Annual General Meeting 2023, which may be paid to the Board of Directors for the term of office from the 2023 Annual General Meeting to the 2024 Annual General Meeting, was therefore not exceeded. The year-onyear change is mainly due to other compensation paid to the Chairman in 2023, see footnote 5 in the table "Compensation of the Board of Directors in 2023".

Compensation of Group Management

The table below shows the compensation paid to members of Group Management for the 2024 and 2023 financial years.

Compensation of Group Management in 2024 and 2023 (audited)

(in CHF 1000s)1		2024		2023
Group Management	2 members2	of whom highest individual compensation3	3 members2	of whom highest individual compensation3
Fixed basic compensation in cash	987	650	969	650
Performance-related compensation4	233	138	466	248
Long-term Incentive plan (2024–2026)5	350	200	n/a	n/a
Long-term Incentive plan (2021–2023)6	n/a	n/a	0	0
Pension benefits7	264	162	285	163
Total compensation of Group Management	1 834	1 150	1 720	1 061

• ¹ The amounts are gross figures. 2 Two members in financial year 2024, Roman Sonderegger, CEO, and Urs Scheidegger, CFO. Three members from 1 September 2023 until 30 September 2023; Urs Scheidegger joined the company as Designated CFO on 1 September 2023, and assumed the role of CFO on 1 October 2023, succeeding his predecessor until 30 September 2023. As of 31 December 2023, the Group Management comprises two members: Roman Sonderegger, CEO, and Urs Scheidegger, CFO. 3 Roman Sonderegger, CEO
• ⁴ 2024: Performance-related compensation is composed as follows: Objectives for the CEO and CFO are taken into account for 12 months; with 50% of performance-related compensation being paid out in shares on the volume-weighted average share price of 20 trading days on SIX Swiss Exchange in February 2025; the resulting shares with a vesting period of three years are allocated to the members of the Group Management on 17 March 2025.
• 2023: Performance-related compensation was composed as follows: Objectives for the CEO were taken into account for 12 months; objectives for the acting CFO were taken into account for four months; with 50% being paid out in shares on the volume-weighted average share price of the 21 trading days on SIX Swiss Exchange in February 2024 (i.e. CHF 453 per share); the resulting number of shares with a vesting period of three years was allocated to the members of the Group Management on 18 March 2024. Objectives for the former CFO in 2023 were taken into account for nine months and was paid out in the fourth quarter 2023. No retention bonus was paid for the performance period 2021 – 2023, neither in 2023 nor in 2024.
• ⁵ Long-term Incentive plan 2024–2026: Participants are the two members of the Group Management active in 2024. For details see page 105. Disclosure is made on the basis of the amounts accrued and annually updated over the three-year plan term. The amounts disclosed above for the cash component of the 2024– 2026 LTI contain the first third of the cash payments expected after expiry of the three-year plan term based on a current assessment. For the years 2025 and 2026, the other two thirds for the years 2025 and 2026 will be disclosed for the respective years on the basis of the most current assessment of performance and the expected payout amount. However, the LTI will only be paid out in cash in March 2027 depending on the achievement of the performance targets.
• ⁶ Long-term Incentive plan 2021–2023: Participants were the two members of the Group Management who were already members of the Group Management in 2021. For details of the LTI 2021–2023, see page 91 in the Annual Report 2023: https://www.schweiter.ch/s1a200/investors/financial-reports-presentations.html. In March 2024, no payment occurred for the LTI (2021–2023) neither to the former CEO nor to the former CFO, as the specified performance objectives were not achieved over the entire performance period of three years.
• ⁷ Employer's contribution to social insurance and the pension fund

Explanatory notes on the compensation table

• In fiscal year 2024, the Group Management consisted of two members, the CEO, Roman Sonderegger, and the CFO, Urs Scheidegger, both for a 12-month period.
• In fiscal year 2023, Group Management temporarily consisted of three members due to the change of the CFO:
• Roman Sonderegger, CEO, for a 12-month period
• Urs Scheidegger, CFO, from 1 October to 31 December 2023 (Designated CFO from 1 September to 30 September 2023, and CFO as of 1 October 2023)
• Martin Klöti, former CFO from 1 January to 30 September 2023
• In 2024, the fixed compensation for the CEO remained unchanged. With the change of the CFO in Autumn 2023, a new fixed compensation was set for the CFO.
• The structure of the variable compensation remained unchanged for both the CEO and the CFO compared to the previous year. The payment of the variable compensation (short-term performance-based compensation) for 2024 for the Group Management corresponded to 21% and 28% of the fixed compensation (2023: temporarily reflecting three members between 38% and 73%). For the CEO it corresponded to 21% (2023: 38%). The year-on-year change is mainly due to the lower level of target achievement.
• The LTI value disclosed corresponds to one third of the 2024–2026 LTI grant value based on a current performance assessment. The other two thirds for the years 2025 and 2026 will be disclosed for the respective years on the basis of the most current assessment of performance and the expected payout amount, provided that the employment contracts continue to exist. The change compared to the previous year is due to the fact that no member of the Group Management was entitled to participate in the LTI 2021–2023 in 2023.
• No bridging payments were made to members of Group Management under the pension fund either in 2024 or in 2023.

For the financial year 2024, the members of Group Management were awarded an aggregate total compensation of CHF 1 834 000, which is within the maximum aggregate compensation amount of CHF 3 000 000 that was approved by the shareholders at the Ordinary General Meeting 2023.

Mandates of members of governing bodies in other companies with an economic purpose

The tables below list all other mandates of the members of the governing bodies in other companies as required by Article 734e of the new Swiss Code of Obligations. The statutory rules regarding the number of permissible further activities and vested interests of the members of the governing bodies of Schweiter Technologies AG are mentioned in Article 27f of the company's Articles of Association. For details, please refer to the comments on pages 84 and 91 of the Corporate Governance Report. The company's Articles of Association are available under the following link:

https://www.schweiter.ch/s1a127/corporate-governance/articles-of-association.html

Other mandates of the members of the Board of Directors of Schweiter Technologies AG as of 31 December 2024 (audited)

Name Mandates in listed companies1		Other activities1
Heinz O. Baumgartner	Bystronic AG, CoB	United Grinding Group, BoD Bluearbre AG, BoD
Daniel Bossard	Bossard Group, CEO (as well as various Board memberships in subsidiaries of the Bossard Group)	BURU Holding AG, BoD Ecoparts AG, BoD "Doing Business in the USA" chapter of the Swiss-American Chamber of Commerce, Zurich, Member
Vanessa Frey	Inficon Holding AG, BoD	Corisol Holding AG, CoB and CEO (as well as various Board memberships in subsidiaries of the Corisol Group) Small Cap Invest AG, CoB KWE Beteiligungen AG, CoB TATA 1mg Technologies, BoD Non-Profit Foundations: Avilan Ocean Foundation, Chairwoman fit4future foundation, Chairwoman Avilan Sport Foundation, Chairwoman2
Jacques Sanche	Bucher Industries AG, CEO (as well as various Board memberships in subsidiaries of the Bucher Group)	"Doing Business in the USA" chapter of the Swiss-American Chamber of Commerce, Zurich, Member
Beat Siegrist	Phoenix Mecano AG, BoD Inficon Holding AG, BoD	Bomatec Holding AG, BoD The Island Rum Company AS, BoD
Lars van der Haegen	Belimo Group, CEO (as well as various Board memberships in subsidiaries of the Belimo Group)	"Doing Business in the USA" chapter of the Swiss-American Chamber of Commerce, Zurich, Member American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), Member CEO4Climate, an initiative of swisscleantech, Member Foundation >>venture>>, Zurich, Member Advisory Board
Stephan Widrig	Allreal Group, CEO (as well as various Board memberships in subsidiaries of the Allreal Holding AG)	None

¹ CoB = Chairman / Chairwoman of the Board of Directors; BoD = Member of the Board of Directors; CEO = Chief Executive Officer

Other mandates of the members of the Group Management of Schweiter Technologies AG as of 31 December 2024 (audited)

Name	Mandates in listed companies Other activities1
Roman Sonderegger	None	AMAG Group AG, BoD2
Urs Scheidegger	None	None

¹ BoD = Member of the Board of Directors

^{2 2024} new mandate vs. 2023

^{2 2024} new mandate vs. 2023

Compensation to former members of governing and executive bodies or related parties (audited)

Georg Reif, CTO, retired on 31 March 2019 and stepped down as a member of Group Management of Schweiter Technologies as of that date. Since then, he has continued to exercise his function as Managing Director of the Schweiter Pension Fund on an external mandate basis. The total compensation for this mandate amounted to CHF 20 000 gross per year in each case, also in 2024.

No further compensation was paid to former members of governing and executive bodies during the year under review other than the sum set out above. In the previous year, no further compensation was paid to former members of governing and executive bodies or related parties.

Loans and credits to members or former members of governing and executive bodies or related parties (audited)

In accordance with the Articles of Association, the company may not grant loans, credits or pension benefits other than from the occupational pension plans to members of the Board of Directors or Group Management or related parties. Advance payments of lawyer fees, court fees and similar costs up to a maximum of CHF 1.0 million in connection with defense against corporate liability claims are not subject to this provision. No such claims were asserted in the reporting year.

Shareholdings of members of the Board of Directors and Group Management (audited)

Information on the shares held by members of the Board of Directors and Group Management can be found on page 174 of the notes to the 2024 annual financial statements.

COMPENSATION GOVERNANCE

Role of shareholders

The role of shareholders in compensation matters has been strengthened in recent years. Specifically, shareholders annually approve the aggregate compensation amounts for the Board of Directors and Group Management by way of binding votes at the General Meeting. Shareholders also annually elect the members of the Nomination and Compensation Committee of the Board of Directors. Additionally, the compensation principles are defined in the Articles of Association valid as of 4 April 2023 (https://www.schweiter.ch/s1a127/corporate-governance/articles-of-association.html, available in German only):

Articles of Association: provisions on compensation1

Principles governing compensation for members of the Board of Directors (Article 27a)

The members of the Board of Directors receive fixed compensation in cash and/or shares for their services on the Board of Directors and its committees, as well as potentially a fee for consulting services.

Principles governing compensation for members of Group Management (Articles 27b, 27c, and 27e)

Compensation of the members of Group Management consists of a fixed and a performance-based component, which may amount to a maximum of 200% of the fixed component. The performance objectives to be achieved for the performance-based compensation component are set by the Board of Directors, acting on the proposal of the Nomination and Compensation Committee, for each member of Group Management, due consideration being given to Group-wide and individual criteria. In order to encourage members of Group Management to remain with the Group on a long-term basis, the Board of Directors may decide that the fixed and/or performance-based compensation component can be fully or partly paid out in shares of the company. The Board of Directors determines what proportion is to be paid in shares as well as the value of the shares at the time of allocation. The shares are restricted for a period of at least one year and no more than five years. The specific period and vesting conditions are determined by the Nomination and Compensation Committee.

Loans, advances, and pension benefits (Article 27h) No loans, credits or pension benefits other than from occupational pension plans are granted to members of the Board of Directors or Group Management.

Vote on the maximum total compensation amounts for the Board of Directors and Group Management (Article 10a)

The Board of Directors submits to the General Meeting for approval a proposal regarding the maximum total compensation amount for the Board of Directors that may be paid for the period until the subsequent Ordinary General Meeting. The Board of Directors will also submit to the General Meeting for approval a separate proposal regarding the maximum total compensation amount for Group Management that may be paid for the subsequent financial year.

Provisions for new members of Group Management (Article 10b, 27e)

In the event that new members are appointed to the Group Management and if the total amount of compensation for Group Management approved by the General Meeting for the current and/or subsequent financial year is not sufficient, an additional compensation amount may be paid to the new members for the compensation periods already approved by the General Meeting. The additional amount for all new members in total may not exceed 50% of the respective total compensation amount for Group Management approved by the General Meeting. Schweiter Technologies AG may grant new members of Group Management a compensation payment in the form of cash or shares to offset financial disadvantages resulting from the change of position.

Role of the Board of Directors and the Nomination and Compensation Committee

The Nomination and Compensation Committee consists of at least three members of the Board of Directors who are elected annually and individually by the General Meeting to serve on the committee. The term of office of the members of the Nomination and Compensation Committee is one year, ending with the conclusion of the subsequent Ordinary General Meeting. Re-election is possible.

In accordance with the Articles of Association (valid as of 4 April 2023) and the organizational regulations (adopted on 13 December 2022), the Nomination and Compensation Committee has, in particular, the following duties and responsibilities with respect to compensation matters concerning the Board of Directors and Management:

¹ The basis for the 2024 compensation is the Articles of Association of the company (valid as of 4 April 2023).

• Submitting to the Board of Directors proposals concerning the definition of the principles of compensation applicable to Management, including the proportion to be paid in shares and the valuation of these shares
• Submitting to the Board of Directors proposals on the motions to the Annual General Meeting, concerning the total compensation amounts of the Board of Directors and Management
• Submitting to the Board of Directors proposals concerning the individual levels of compensation of the members of the Board of Directors and Management within the respective aggregate compensation amounts approved by the General Meeting
• Submitting to the Board of Directors proposals on the motions to the Annual General Meeting concerning amendments to the Articles of Association with regard to the compensation system applicable to the Board of Directors and Management

The Nomination and Compensation Committee prepares the annual Compensation Report for the attention of the Board of Directors. In addition to the tasks regarding compensation, the Nomination and Compensation Committee also has tasks regarding succession planning in connection with changes in the Board of Directors and related nomination or election recommendations to the Board of Directors for the attention of the Annual General Meeting, as well as the evaluation and succession planning of the Group Management. The tasks and competencies are set out in detail in the Corporate Governance Report, page 86, section "Nomination and Compensation Committee".

The Nomination and Compensation Committee acts in a preparatory capacity, while the Board of Directors retains final authority on compensation matters (except for the aggregate compensation of the Board of Directors and of Management, which are subject to shareholders' approval).

Decision-making authority on compensation matters

Level of responsibility	Recommendation	Review	Approval
Compensation policy and programs	Nomination and Compensation Committee		Board of Directors
Aggregate compensation for Board of Directors and Group Management	Nomination and Compensation Committee	Board of Directors	Annual General Meeting
Individual compensation of members of the Board of Directors	Nomination and Compensation Committee		Board of Directors1
Individual CEO compensation	Nomination and Compensation Committee		Board of Directors
Individual compensation of other members of Group Management	CEO	Nomination and Compensation Committee	Board of Directors

¹ In the event of a conflict of interests, the concerned member abstains from voting.

The Nomination and Compensation Committee comprises three members. At the Annual General Meeting on 10 April 2024, the members were elected individually and for a term of office of one year; Jacques Sanche, Daniel Bossard, and Vanessa Frey were re-elected. Jacques Sanche assumed the chairmanship of the Nomination and Compensation Committee until the next Ordinary General Meeting. In the year under review, the Nomination and Compensation Committee held two meetings.

After each meeting, the Chair of the Nomination and Compensation Committee reports on the committee's activities to the Board of Directors. The committee meeting minutes are made available to the members of the Board of Directors. As a rule, the CEO and the CFO participate in the meetings in an advisory capacity. However, they do not attend the meetings or the part of the meetings when their own compensation is being discussed and determined. In 2024, the CEO and the CFO attended both meetings of the Nomination and Compensation Committee; in addition, the Chairman of the Board of Directors attended both meetings of the Nomination and Compensation Committee as a guest. Likewise, other members of Group Management who are invited to the meetings are not present during the meetings, or the part thereof, when their own compensation is being discussed.

PROCESS FOR DETERMINING THE COMPENSATION FOR THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

Benchmarking

The Nomination and Compensation Committee periodically reviews the compensation of members of the Board of Directors and Group Management whenever it sees need for action.

The amount of fees for the members of the Board of Directors remained unchanged in 2024 compared to the previous year as well as the structure of the compensation model, it was last adjusted in 2023. Since the Annual General Meeting 2023, the compensation of the members of the Board of Directors has consisted of cash compensation (including expense allowances) and share-based compensation (vesting period of three years).

The compensation model for the Group Management was reviewed at the beginning of 2024. The overall structure was retained compared to the previous year. With the change of CFO, since September 2023, 50% of the short-term variable compensation for the CEO, and also for the CFO, is paid in cash and 50% in shares (vesting period of three years). From 2022, individual target achievement is also linked to ESG criteria. No separate analysis was carried out for the amounts paid out to the members of the Group Management in the reporting year 2024.

Performance management process

The actual compensation paid to the individual members of Group Management in a given financial year is based on the company's results and on personal performance. Individual performance is assessed as part of the annual management by objectives (MBO) process.

The Chairman of the Board of Directors, together with the CEO, sets the objectives (MBO) for the CEO, which are reviewed by the Nomination and Compensation Committee. The objectives for the CFO are agreed between the CEO and CFO. The respective performance is assessed against these objectives at the end of the year. In evaluating performance, the achievement of individual objectives and other factors such as the extent to which the executives have carried out their duties in line with the company's values and the expected leadership qualities are also considered. The individual performance assessments and the company's results form the basis for determining the compensation actually paid out.

MBO process and determination of compensation

Report of the statutory auditor

To the General Meeting of Schweiter Technologies AG, Steinhausen

Report on the Audit of the Remuneration Report

Opinion

We have audited the Remuneration Report of Schweiter Technologies AG (the Company) for the year ended 31 December 2024. The audit was limited to the information pursuant to Art. 734a-734f of the Swiss Code of Obligations (CO) in the tables marked "audited" on pages 106 to 111 of the Remuneration Report.

In our opinion, the information pursuant to Art. 734a-734f CO in the accompanying Remuneration Report complies with Swiss law and the Company's articles of incorporation.

Basis for Opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's Responsibilities for the Audit of the Remuneration Report" section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the tables marked "audited" in the Remuneration Report, the consolidated financial statements, the stand-alone financial statements and our auditor's reports thereon.

Our opinion on the Remuneration Report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Remuneration Report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the audited financial information in the Remuneration Report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' Responsibilities for the Remuneration Report

The Board of Directors is responsible for the preparation of a Remuneration Report in accordance with the provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of a Remuneration Report that is free from material misstatement, whether due to fraud or error. The Board of Directors is also responsible for designing the remuneration system and defining individual remuneration packages.

Auditor's Responsibilities for the Audit of the Remuneration Report

Our objectives are to obtain reasonable assurance about whether the information pursuant to Art. 734a-734f CO is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Remuneration Report.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement in the Remuneration Report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

KPMG AG

Toni Wattenhofer Licensed Audit Expert Auditor in Charge

Las Welkerlife

Zug, 26 February 2025

Kevin Aregger Licensed Audit Expert

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated income statement	120
Consolidated statement of comprehensive income	121
Consolidated balance sheet	122
Consolidated statement of cash flows	124
Consolidated statement of changes in equity	125
Notes to the consolidated financial statements	127
Accounting policies	128
Operating segments and geographical information	138
Notes to the consolidated financial statements	140
Report of the statutory auditor	164

CONSOLIDATED INCOME STATEMENT

(in CHF m)	2024	%	2023	%
Net sales	1 011.3	100.0	1 069.6	100.0	17
Change in inventories of semi-finished and finished goods	2.2	0.2	–7.4	–0.7
Material expenses	–519.9	–51.4	–564.0	–52.7
Personnel expenses	–232.6	–23.0	–210.3	–19.7
Other operating expenses	–202.8	–20.1	–206.8	–19.3	18
Other operating income	14.0	1.4	8.6	0.8	19
EBITDA	72.2	7.1	89.7	8.4
Depreciation and amortization	–49.1	–4.9	–39.4	–3.7	20
EBIT	23.1	2.3	50.3	4.7
Financial income	5.2	0.5	0.5	0.0	21
Financial expenses	–6.6	–0.7	–17.3	–1.6	22
Share of result of associated companies	0.2	0.0	0.4	0.0	6
Income before taxes	21.9	2.2	33.9	3.2
Income taxes	–9.0	–0.9	–6.3	–0.6	23
Net income	12.9	1.3	27.6	2.6
Net income attributable to
the shareholders of Schweiter Technologies AG	13.3	1.3	27.6	2.6
the non-controlling interests	–0.4	–0.0	0.0	0.0
EARNINGS PER SHARE (IN CHF)					25
– undiluted	9.3		19.3
– diluted	9.3		19.3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in CHF m)	2024	2023
Net income	12.9	27.6
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to the statement of income:
– Exchange differences on translation of foreign operations	27.0	–45.9
– Tax effects	0.0	0.0
Exchange differences reclassified to the statement of income	0.0	0.6
Total	27.0	–45.3
Items that will not be reclassified subsequently to the statement of income:
– Revaluation of defined benefit plans	–1.7	–0.8
– Tax effects	0.2	0.2
Total	–1.5	–0.6
Total other comprehensive income	25.5	–45.9
Comprehensive income	38.4	–18.3
Comprehensive income attributable to
the shareholders of Schweiter Technologies AG	38.8	–18.3
the non-controlling interests	–0.4	0.0

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CONSOLIDATED BALANCE SHEET

ASSETS (IN CHF M)	31 December 2024	%	31 December 2023	%
CURRENT ASSETS
Cash and cash equivalents	106.8		93.8
Trade receivables	139.2		159.9		1
Current income tax receivables	2.3		3.2
Advance payments to suppliers	2.1		2.6
Other receivables	23.6		16.2
Prepaid expenses and accrued income	6.6		6.8
Inventories	192.2		185.4		2
Assets held for sale	6.1		0.0		3
Total current assets	478.9	44.8	467.9	44.9
NON-CURRENT ASSETS
Property, plant and equipment	335.9		332.1		4
Biological assets	46.8		40.3		5
Investments in associated companies	2.6		2.4		6
Financial assets	1.9		1.9
Deferred tax assets	12.6		13.1		23
Intangible assets (incl. goodwill)	191.2		185.0		7
Total non-current assets	591.0	55.2	574.8	55.1
Total assets	1 069.9		1 042.7

LIABILITIES AND SHAREHOLDERS' EQUITY (IN CHF M)	31 December 2024	%	31 December 2023	%
LIABILITIES
Current financial liabilities	66.3		75.0		8
Trade payables	61.9		58.9
Prepayments received from customers	2.7		3.2
Other payables	8.7		8.5
Accrued expenses and deferred income	47.6		47.5		9
Current provisions	12.8		3.7		14
Current income tax payables	15.3		14.4
Total current liabilities	215.3	20.1	211.2	20.3
Non-current financial liabilities	42.1		35.1		10
Other non-current liabilities	2.7		0.0
Deferred tax liabilities	30.6		29.0		23
Non-current provisions	5.5		10.2		14
Employee benefits	53.6		50.8		13
Total non-current liabilities	134.5	12.6	125.1	12.0
Total liabilities	349.8	32.7	336.3	32.3
SHAREHOLDERS' EQUITY
Share capital	1.4		1.4		15
Reserves	716.3		705.0
Shareholders of Schweiter Technologies AG	717.7	67.1	706.4	67.7
Non-controlling interests	2.4		0.0
Total shareholders' equity	720.1	67.3	706.4	67.7
Total liabilities and shareholders' equity	1 069.9		1 042.7

CONSOLIDATED STATEMENT OF CASH FLOWS

(in CHF m)	2024	2023
Net income	12.9	27.6
Depreciation and amortization	49.1	39.4	20
Change in provisions and employee benefits	4.3	–4.5
Gain from sale of property, plant and equipment	–1.7	–1.7
Gain from sale of biological assets	–0.7	–0.4
Other positions not impacting cash	–6.2	–4.1
Financial income and share of result of associated companies	–5.4	–0.9	21
Financial expenses	6.6	17.3	22
Income taxes	9.0	6.3	23
Change in working capital
– Change in trade receivables	26.9	6.7
– Change in other receivables and prepaid expenses	–1.6	3.2
– Change in inventory and work in progress	1.5	17.1
– Change in trade payables	0.5	–13.3
– Change in other liabilities and deferred income	–1.4	–6.3
Income taxes paid	–8.1	–8.1
Cash flow from operating activities	85.7	78.3
Purchase of subsidiaries, net of cash acquired	–6.2	–15.5	24
Purchase of property, plant and equipment	–20.8	–31.7
Proceeds from sale of property, plant and equipment	3.1	4.2
Proceeds from sale of biological assets	0.8	0.4
Purchase of intangible assets	–0.3	–0.4
Repayment of financial assets	0.1	0.6
Increase in financial assets	–0.2	–0.2
Interest received	0.2	0.2
Cash flow from investing activities	–23.3	–42.4
Repayment of lease liabilities	–11.7	–10.9
Increase in financial liabilities	0.0	30.0
Repayment of financial liabilities	–14.8	–8.5
Interest paid	–4.5	–3.9
Dividend paid	–21.5	–28.6	15
Cash flow from financing activities	–52.5	–21.9
Currency exchange differences on cash and cash equivalents	3.1	–6.1
Change in cash and cash equivalents	13.0	7.9
Cash and cash equivalents as of 1 January	93.8	85.9
Cash and cash equivalents as of 31 December	106.8	93.8

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in CHF m)	Share capital	Retained earnings	Currency translation adjustments	Total	Non controlling interests	Total shareholders' equity
Balance as of 1 January 2023	1.4	847.0	–95.6	752.8	0.0	752.8
Net income		27.6		27.6	0.0	27.6
Other comprehensive income		–0.6	–45.3	–45.9	0.0	–45.9
Comprehensive income		27.0	–45.3	–18.3	0.0	–18.3
Share-based compensation		0.5		0.5		0.5	16
Dividends		–28.6		–28.6	0.0	–28.6
Balance as of 31 December 2023	1.4	845.9	–140.9	706.4	0.0	706.4
Net income		13.3		13.3	–0.4	12.9
Other comprehensive income		–1.5	27.0	25.5	0.0	25.5
Comprehensive income		11.8	27.0	38.8	–0.4	38.4
Share-based compensation		–0.1		–0.1		–0.1	16
Dividends		–21.5		–21.5	0.0	–21.5
Change in non-controlling interests				0.0	2.8	2.8
Change in liabilities towards non-controlling interests		–5.9		–5.9		–5.9
Balance as of 31 December 2024	1.4	830.2	–113.9	717.7	2.4	720.1

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting policies	128
Operating segments and geographical information	138
Notes to the consolidated financial statements	140
Report of the statutory auditor	164

ACCOUNTING POLICIES

GENERAL

Schweiter Technologies AG is a company established under Swiss law, headquartered in Steinhausen.

Schweiter Technologies AG and its subsidiaries ("Group") are specialized in the development, manufacturing and commercialization of composite materials and composite solutions in lightweight construction.

BASIS OF PREPARATION

The consolidated financial statements of Schweiter Technologies AG are prepared in accordance with the International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), and are compliant with Swiss law.

The consolidated financial statements are based on historical acquisition values with the exception of "financial assets at fair value through profit or loss", which are stated at fair value.

ADOPTION OF NEW OR REVISED ACCOUNTING STANDARDS

The following new or revised standards and interpretations of the IASB were applied for the first time for the financial year beginning 1 January 2024:

IAS 1	Classification of Liabilities as Current or Non-current	1
IAS 1	Non-current Liabilities with Covenants	1
IFRS 16	Lease Liability in a Sale and Leaseback	1
IAS 7 and IFRS 17	Supplier Finance Agreements	1

¹ There are no or no material effects on the consolidated financial statements of Schweiter Technologies.

ISSUED STANDARDS NOT YET ADOPTED

The following new and revised standards and interpretations are issued by the IASB. These standards and interpretations were not effective for the reporting period and have not been early adopted in the present consolidated financial statements.

The following table shows the impact estimated by the Executive Management:

	Effective for annual periods beginning on or after	Planned adoption by Schweiter Technologies AG
Lack of Exchangeability	1 January 2025	Financial year 2025	1
Classification and Measurement of Financial Instruments and Contracts Referencing Nature dependent Electricity	1 January 2026	Financial year 2026	1
Annual Improvements to IFRS Accounting Standards	1 January 2026	Financial year 2026	1
Presentation and Disclosure in Financial Statements	1 January 2027	Financial year 2027	2
Subsidiaries without Public Accountability: Disclosures	1 January 2027	Financial year 2027	1

		Effective for annual periods beginning on or after	Planned adoption by Schweiter Technologies AG
IFRS 10 and IAS 28	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	Effective date deferred indefinitely	N/A

¹ No or no material effects are expected on the consolidated financial statements of Schweiter Technologies. 2 The impact on the consolidated financial statements of Schweiter Technologies is still being evaluated.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements of Schweiter Technologies AG include all entities that are controlled by the Group.

Entities over which the Group has significant influence (generally companies in which the Group holds more than 20% of voting rights, but not more than 50%) are accounted for using the equity method. They are reported in the balance sheet at acquisition value, adjusted for dividend payments and the Group's shares in the accumulated comprehensive income after the acquisition.

CHANGES IN THE SCOPE OF CONSOLIDATION

Changes in financial year 2024

Acquisitions:

On 26 February 2024, 60% of the shares in Jiangsu ZNL Coating New Materials, headquartered in Changzhou, Jiangsu Province, China were acquired (see note 24).

Changes in financial year 2023

Acquisitions:

On 31 May 2023, the remaining 60%-interest in JMB Wind Engineering, headquartered in Goleniów, Poland, with operations in Poland, Portugal, and Brazil was acquired (see note 24).

SCOPE OF CONSOLIDATION

The following companies were fully consolidated as of 31 December:

					Investments
Company	Purpose	Share capital in 1000s		2024	2023
Schweiter Technologies AG Steinhausen, Switzerland	Holding company	CHF	1 432	–	–
3A Composites Holding AG Steinhausen, Switzerland	Holding company	CHF	10 000	100%	100%
3A Composites International AG Steinhausen, Switzerland	Management	CHF	100	100%	100%
Airex AG Sins, Switzerland	Production and distribution	CHF	5 000	100%	100%
3A Composites Mobility AG Altenrhein, Switzerland	Production and distribution	CHF	1 000	100%	100%
3A Composites Germany GmbH Singen, Germany	Holding company	EUR	25	100%	100%
3A Composites Holding Germany GmbH Singen, Germany	Holding company	EUR	25	100%	100%
3A Composites GmbH Osnabrück, Germany	Production and distribution	EUR	2 556	100%	100%

				Investments
Company	Purpose		Share capital in 1000s	2024	2023
Polycasa GmbH Mainz, Germany	Production and distribution	EUR	26	100%	100%
Polycasa Service GmbH Mainz, Germany	Property management	EUR	26	100%	100%
Polycasa Nischwitz GmbH Nischwitz, Germany	Production and distribution	EUR	562	100%	100%
Polycasa Holdings GmbH Mainz, Germany	Holding company	EUR	25	100%	100%
Foamalite Ltd. Loch Gowna, Ireland	Production and distribution	EUR	1 905	100%	100%
Athlone Extrusions Ltd. Athlone, Ireland	Production and distribution	EUR	0.001	100%	100%
Athlone Extrusions (UK) Ltd. Birmingham, United Kingdom	Distribution	GBP	0.002	100%	100%
Perspex International Ltd. Darwen, United Kingdom	Production and distribution	GBP	0.1	100%	100%
Perspex Distribution Ltd. Darwen, United Kingdom	Distribution	GBP	1	100%	100%
Polycasa N.V. Geel, Belgium	Distribution	EUR	91 709	100%	100%
Polycasa Spain S.A.U. Montcada i Reixac, Spain	Production and distribution	EUR	12 188	100%	100%
Polycasa Slovakia sro Žilina, Slovakia	Production and distribution	EUR	4 485	100%	100%
Polycasa Ltd. Leeds, United Kingdom	Distribution	GBP	11 400	100%	100%
Polycasa sro Príbram, Czech Republic	Production and distribution	CZK	100	100%	100%
Polycasa France SA Paris, France	Distribution	EUR	1 779	100%	100%
3A Composites Mobility SA Mielec, Poland	Production and distribution	PLN	4 124	100%	100%
Airex Poland Sp. z o.o. Nowogard, Poland	Production and distribution	PLN	10	100%	100%
P.I.W. "JMB" Sp. z o.o. Goleniów, Poland	Production and distribution	PLN	60	100%	100 %
JMB Wind Lda Palhaça, Portugal	Production and distribution	EUR	1	100%	100 %
3A Composites Holding Inc. Wilmington, DE, USA	Holding company	USD	0.1	100%	100%
Baltek Inc. Wilmington, DE, USA	Production and distribution	USD	0.05	100%	100%
3A Composites USA Inc. St. Louis, MI, USA	Production and distribution	USD	1	100%	100%
3A Composites Asia Pacific Pte. Ltd. Singapore	Distribution	USD	45 114	100%	100%
PT. Alucobond Far East Indonesia Tangerang, Indonesia	Distribution	IDR	2 500 000	100%	100%
3A Composites Malaysia Sdn. Bhd. Kuala Lumpur, Malaysia	Distribution	MYR	1 000	100%	100%
Alucobond Asia Pacific Management (Shanghai) Ltd., China	Management	USD	2 500	100%	100%
3A Composites (China) Ltd. Shanghai, China	Production and distribution	USD	10 000	100%	100%

					Investments
Company	Purpose		Share capital in 1000s	2024	2023
Alucobond Composites (Jiangsu) Ltd. Changzhou, China	Production and distribution	USD	10 000	100%	100%
Airex Composites Ltd. Changzhou, China	Production and distribution	USD	13 000	100%	100%
Jiangsu ZNL Advanced Materials Technology Co., Ltd Changzhou, China	Production and distribution	CNY	10 000	60%	–
3A Composites India Pvt. Ltd. Mumbai, India	Production and distribution	INR	70 098	100%	100%
3A Composites PNG Ltd. Kokopo, Papua New Guinea	Production and distribution	PGK	35 700	100%	100%
Plantaciones de Balsa Plantabal S.A. Guayaquil, Ecuador	Production	USD	69 849	100%	100%
PGS Ecuador S.A. Quevedo, Ecuador	Production and distribution	USD	80	100%	100%
JMB Wind Brasil Ltda Horizonte, Brazil	Production and distribution	BRL	2 707	100%	100 %

FOREIGN CURRENCY TRANSLATION

The consolidated financial statements are presented in Swiss francs (CHF). The Swiss franc is both the functional and the reporting currency of Schweiter Technologies AG. The income statement and statement of cash flows of foreign entities are translated at annual average exchange rates. Year-end exchange rates are used to translate the balance sheet, while the equity is translated at historical exchange rates.

Transactions in foreign currencies are translated into the functional currency using the exchange rates at the time of the transaction. Foreign exchange differences arising from such transactions as well as from the translation of monetary assets and liabilities denominated in foreign currencies maintained at the closing date are recognized in the income statement.

Foreign exchange differences arising from long-term intercompany loans that form part of the net investment in a foreign operation are recognized in other comprehensive income. Foreign exchange differences that were recorded in equity are recognized in the income statement when the Group loses control over a foreign operation or the accounting using the equity method ends.

The following main foreign currency rates have been applied:

					Year-end rate 31.12. for the balance sheet		Average rate for the income statement
				2024	2023	2024	2023
USA	Dollar	USD	1	0.905	0.841	0.880	0.899
EU	Euro	EUR	1	0.940	0.929	0.953	0.972
GB	Pound	GBP	1	1.134	1.071	1.125	1.117
China	Yuan	CNY	1	0.124	0.119	0.122	0.127
India	Rupee	INR	100	1.057	1.010	1.052	1.088

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenues are recognized in accordance with the requirements of IFRS 15 Revenues from Contracts with Customers. The revenues mainly contain the physical sale of goods from the company's own production. The sales are recognized at the point in time when the power of disposal of the products is transferred in accordance with the agreed conditions and Incoterms. The sale usually comprises a single performance obligation and is based almost exclusively on fixed prices without variable consideration.

As in prior years, it is common in the industry to grant revenue-related reimbursements to individual distribution customers. This reimbursement is included in the revenues and is calculated using the most likely amount.

TRADE RECEIVABLES

Trade receivables are recognized in accordance with the requirements of IFRS 9 Financial instruments.

The value adjustment of receivables is based on the assessment of future defaults. Known risks are individually impaired, while the general allowance is based on historical experience and an estimate of the current circumstances and future potential losses. The assessment includes the expected economic conditions as well as the future financial performance of the contracting party.

INVENTORIES

Purchased goods are reported at acquisition costs; self-produced goods are measured at production costs. If the realizable value is lower, corresponding value adjustments are made. The production costs comprise of raw material costs, direct labor costs, other direct costs; and related production overhead costs.

Inventories are measured using the weighted average costs method. For non-marketable parts held in inventory, an appropriate allowance is recognized on the basis of inventory turnover. Intercompany profits in inventory are eliminated through the income statement.

The valuation of inventories includes estimates with respect to the recoverability based on the expected consumption of the article in question. The value adjustment on inventories is calculated based on an assessment of volume risks, technical risks, and price-related risks. Where necessary, the parameters are adjusted.

PROPERTY, PLANT AND EQUIPMENT

Land is measured at acquisition cost. Impairments are recognized for any decrease in value which has occurred. Buildings, machinery, vehicles, and operating equipment are measured at acquisition costs less accumulated depreciation. Depreciation is calculated using the straight-line method over the following estimated useful life:

Land1 no depreciation Buildings1 20 to 40 years

Conversions and installation1 10 years or period of rental

Machinery & tools 5 to 20 years Furnishings 8 to 10 years Computer systems 3 to 5 years Vehicles 3 to 8 years Assets under construction no depreciation

The right-of-use assets are depreciated over the lease term or, if shorter, over the useful life.

¹ Summarized in "Land and buildings" in the statement of changes in property, plant and equipment

BIOLOGICAL ASSETS

3A Composites uses and processes balsa wood cultivated at its own plantations.

Biological assets are measured at their fair value less cost to sell in accordance with IFRS 13 and IAS 41. As there is no active and liquid market for the standing balsa trees, the fair value of the biological assets is determined by qualified staff employed by 3A Composites using generally accepted modeling methods, which comprise a net present value (NPV) technique to discount the future cash flows.

The NPV is calculated as the net of the future cash inflows and outflows associated with balsa plantation activities up to the time of anticipated harvesting, discounted back to current values at an appropriate discount rate.

INTANGIBLE ASSETS

Other intangible assets (excluding goodwill) are stated at acquisition costs and amortized on a straightline basis over their estimated useful life. The estimated useful life is as follows:

Software 3 to 5 years Patents lifespan of patents

Acquired customer relationships 3 to 5 years Acquired brand names unlimited

Since no end to the useful life of the protected brand names AIREX®, AKRYLON®, ALUCOBOND®, BALTEK®, DIBOND®, GATOR®, KAPA®, and PERSPEX® is foreseeable, they are defined as assets with an indefinite useful life. Accordingly, the asset is not amortized but tested at least annually for impairment.

EMPLOYEE BENEFITS

Within the Group, a number of different pension plans are in place in compliance with the relevant legal requirements. These include defined benefit and defined contribution plans, retiree medical plans, and other long-term benefits. The obligations for employee benefits are determined and recognized in accordance with the requirements of IAS 19 Employee Benefits.

For defined benefit pension plans, pension costs are calculated on the projected unit credit method. Valuations are calculated annually by independent actuaries.

The pension obligations or pension plan assets recognized in the consolidated financial statements correspond to the surpluses or shortfalls of the defined benefit pension plans. However, the pension plan assets recognized are limited to the present value of the economic benefit to the Group from future reductions in contributions or refunds.

Actuarial gains and losses are recognized in other comprehensive income and cannot be recycled. Service costs including current service costs and net interest expenses are recognized in the income statement.

Obligations resulting from termination of employment are recognized at the stage when the Group no longer has any other option but to finance the benefits offered. In any event, the expense will be recognized at the latest at the stage when the other restructuring expenses are also recognized.

For other long-term benefits, the present value of the obligation is recognized on the balance sheet date. Changes in the present value are recognized directly in the income statement as personnel expenses.

LEASES

The lease liability is initially measured at the present value of future lease payments. Generally, a regional-specific incremental borrowing rate is used to determine the present value.

For leases with terms not exceeding twelve months and for leases of low-value assets, the Group has exercised the optional application exemptions. The lease payments under these contracts are generally recognized on a straight-line basis over the lease term as other operating expenses. The Group is using the option and recognizes all lease and non-lease components as a lease. A single discount rate is applied to a portfolio of leases with similar characteristics.

Some property leases contain extension options exercisable before the end of the non-cancellable contract period. At the commencement date, it is assessed whether it is reasonably certain to exercise the extension option.

If the expected lease payments change as a result of index-linked considerations, for example, or on the basis of new assessments of contractual options, the liability is remeasured. The adjustment to the new carrying amount generally takes place with no impact on profit or loss, with a corresponding adjustment to the right-of-use asset.

Lease arrangements in which Schweiter Technologies is the lessor are classified as operating leases. The leased asset continues to be presented on the balance sheet and the lease payments are generally recognized as income on a straight-line basis over the lease term.

INCOME TAXES

Income taxes comprise the tax expense in respect of all recognized profits for the reporting period. They include current and deferred income taxes. Current income taxes are calculated on taxable profit. Income taxes are recognized in profit or loss except to the extent that they relate to a business combination, or are items recognized directly in equity or in other comprehensive income.

Deferred taxes are calculated according to the balance sheet liability approach. Deferred tax liabilities are recognized for taxable temporary differences arising from investments in subsidiaries, except where the Group is able to control the distribution of earnings from these respective entities and where dividend payments are not expected to occur in the foreseeable future. Deferred income tax assets and liabilities are measured using enacted, or substantively enacted, tax rates anticipated to apply to taxable income in the periods in which the temporary differences are expected to be recovered or settled.

FINANCIAL RISK MANAGEMENT

Market risks and risk management basic principles

The Group is subject to market risks, credit risks, and liquidity risks. The market risks consist primarily of foreign currency risks and, to a lesser degree, interest rate risks. There are no significant price risks.

The Board of Directors is responsible for overseeing the Group's internal controlling systems which monitor, but cannot rule out, the risk of inadequate business performance. These systems provide appropriate, though not absolute, security against significant inaccuracies and material losses. Management is responsible for identifying and assessing the significant risks.

In addition to quantitative approaches and formal guidelines – which are only part of a comprehensive risk management approach – it is also considered important to establish and maintain a corresponding risk management culture.

In particular bank balances, trade receivables and payables, and interest-bearing liabilities are considered to be financial instruments. The carrying amounts of bank balances, trade receivables and payables are largely the same as their fair value.

Foreign currency risk

As the Group engages in international operations, it is exposed to exchange rate risks. These risks relate primarily to the Euro and the US Dollar. Some forward exchange transactions would be used to hedge exchange rate risks. These instruments are not used for speculative purposes. Foreign currency risks arising from the conversion of items in the income statements and balance sheets of foreign Group companies are not hedged.

If the Swiss franc had been 5% stronger/weaker against the Euro [US Dollar] on 31 December 2024 with all other variables unchanged, after conversion of the financial assets and liabilities into Swiss francs, the pre-tax result of the Schweiter Technologies Group would have been higher/lower by CHF 2.1 million [CHF 0.8 million] (previous year: CHF 1.8 million [CHF 1.5 million]) and shareholders' equity would have been lower/higher by CHF 8.5 million [CHF 5.1 million] (previous year: CHF 8.8 million [CHF 4.7 million]).

Interest rate risks

As the Group did not have significant outside financing and had a diversified portfolio of cash and cash equivalents as of 31 December 2024, there are no material interest rate risks.

Interest rate risks arise from changes in interest rates which have negative repercussions on the Group's asset and earnings situation. Interest rate fluctuations lead to changes in interest income and interest expense on interest-bearing assets and liabilities.

A 1%-point rise or fall in interest rates would increase/reduce the interest result by around CHF 0.0 million (previous year: CHF 0.2 million) respectively.

Credit risks

• Cash and cash equivalents: As a component of risk policy, the Group's cash and cash equivalents are invested with various first-class banks, mainly in the form of term deposits or current account balances. The Group is exposed to credit risks in the event of banks failing to fulfill their obligations. The banks' credit ratings are regularly reviewed, as are the sums invested with each bank. The maximum credit risk corresponds to the book value of CHF 106.8 million (previous year: CHF 93.8 million).
• Receivables: There is no concentration of credit risks relating to trade and other accounts receivables. To minimize default risks, additional collateral (e.g. irrevocable confirmed documentary credits, bank guarantees, and credit risk insurances, etc.) is agreed upon where appropriate based on specific industry, country and customer analysis. The Group carries out constant checks on customers' creditworthiness and does not have any major concentrations of default risks. The maximum credit risk of trade receivables corresponds to the book value of CHF 139.2 million (previous year: CHF 159.9 million) and of other financial receivables to the book value of CHF 15.2 million (previous year: CHF 8.0 million).

Capital management

As part of its capital management, the Group's aim is to secure current financial requirements for the continuation of the business and to provide the necessary resources to achieve its growth targets.

The Group manages the capital structure and makes adjustments in light of changes in economic conditions, business activities, the investment and expansion program, and the risks posed by the underlying assets. To manage the capital structure, the Group can adjust dividend payments, make capital repayments to shareholders, issue new shares, increase its borrowing or sell assets to reduce debts.

The equity presented corresponds to the economic equity. There are no debt capital instruments which can be viewed as equity from an economic point of view. Given the envisaged acquisitions, the Board of Directors considers the level of equity to be appropriate.

Liquidity risk

To meet their obligations, the Group companies require sufficient liquidity. In order to meet the corresponding liabilities, the Group has cash and cash equivalents and unused credit lines. As of 31 December 2024 and 31 December 2023, the Group's financial liabilities have the following maturities. The information is calculated on the basis of the terms to maturity within the balance sheet and the contractually agreed interest and repayment figures.

Financial liabilities: carrying amount and cash outflows

					Cash outflows
2024 (IN CHF M)	Carrying amount 31.12.2024	Total	Up to 1 year	1 to 5 years	More than 5 years
Current financial liabilities	55.1	55.8	55.8
Current lease liabilities	11.2	14.0	14.0
Trade payables	61.9	61.9	61.9
Other liabilities	19.8	19.8	19.8
Non-current financial liabilities	0.2	0.3		0.2	0.1
Non-current lease liabilities	41.9	50.7		37.6	13.1
Other non-current liabilities	2.7	2.7		2.7
Total	192.8	205.2	151.5	40.5	13.2

					Cash outflows
2023 (in CHF m)	Carrying amount 31.12.2023	Total	Up to 1 year	1 to 5 years	More than 5 years
Current financial liabilities	65.7	67.4	67.4
Current lease liabilities	9.3	10.2	10.2
Trade payables	58.9	58.9	58.9
Other liabilities	19.0	19.0	19.0
Non-current financial liabilities	4.3	4.9		3.5	1.4
Non-current lease liabilities	30.8	38.2		28.4	9.8
Total	188.0	198.6	155.5	31.9	11.2

ASSUMPTIONS AND USE OF ESTIMATES

The preparation of the consolidated financial statements requires Management to make estimates and assumptions which affect the reported amounts of assets and liabilities as well as contingent liabilities and contingent assets at the date of the financial statements, and which also affect expenses and revenues in the reporting period.

The estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the given circumstances. The actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and adjusted if necessary. Such changes are recognized in the income statement in the period in which the estimate is revised.

The key assumptions are described below.

Property, plant and equipment, goodwill, and intangible assets

In accordance with the requirements of IAS 36 Impairment of assets, goodwill and brand names with an indefinite useful lifetime are reviewed annually for impairment. Property, plant and equipment and other intangible assets are reviewed when there are signs of impairment. The underlying key estimates are:

• future cash flows
• discount rate

Biological assets

Biological assets are measured at their fair value less cost to sell using a net present value (NPV) technique (level 3 valuation). Key assumptions underlying the NPV calculation are:

• expected volumes of merchantable timber at the anticipated harvest time
• expected market prices
• expected plantation maintenance costs until the harvest time
• expected harvesting, sawmilling and transportation costs
• discount rate

Provisions

Provisions are recognized when a cash outflow from a present obligation is probable and a reliable estimate of the amount is possible. These assessments are periodically reviewed and adjusted if necessary.

Some Group companies are exposed to litigation. Based on current knowledge, Management has made an assessment of the possible impact of these legal cases.

Pension plans

Most Schweiter Technologies employees participate in post-employment pension schemes treated as defined benefit plans in accordance with IAS 19 Employee Benefits. The calculations of the recognized assets and liabilities from such plans are based upon statistical and actuarial calculations. The main assumptions among others are:

• discount rates
• future salary increases
• life expectancy
• future pension increases

The actuarial assumptions used may have an impact on the assets and liabilities of pension schemes recognized in the balance sheet as well as in the other comprehensive income in future reporting periods.

Income taxes

Significant estimates are required in determining the current and deferred assets and liabilities for income taxes. The estimates are based on the published tax laws and regulations.

Some subsidiaries generate tax losses. Often these can be used to offset taxable gains of subsequent periods. Tax losses and deductible temporary differences are only capitalized as deferred tax assets to the extent that it is probable that future profits will be generated against which the corresponding assets can be used for tax purposes. The book value of the deferred tax assets is reviewed each closing date and reduced to the extent that it is no longer probable that there will be sufficient future taxable profits.

OPERATING SEGMENTS

In line with the management structure and the procedures for reporting to Management and the Board of Directors, the only operating segment consists of the operationally active division 3A Composites. The 3A Composites division is managed as an operating segment.

The Group's chief operating decision maker is the Board of Directors of Schweiter Technologies AG. There are no differences between the accounting and valuation principles applied to segment reporting and those applied to the consolidated financial statements. Geographical information is broken down into the regions Europe, Americas, Asia, and the rest of the world. The geographical allocation of net sales is based on the domicile of the customers, that of the assets is based on the domicile of the Group companies.

OPERATING SEGMENTS AND GEOGRAPHICAL INFORMATION

Operating segments 2024

Operating segments (in CHF m)		3A Composites Other/Eliminations	Group
Net sales	1 011.3	0.0	1 011.3
Depreciation and amortization	–43.4	0.0	–43.4	20
Impairment	–5.7	0.0	–5.7	20
EBIT	24.2	–1.1	23.1
Financial income			5.2
Financial expenses			–6.6
Share of result of associated companies			0.2
Income before taxes			21.9
Income taxes			–9.0
Net income			12.9
Capital expenditure in property, plant and equipment	20.1	0.0	20.1
Capital expenditure in intangible assets	0.3	0.0	0.3
Total capital expenditure	20.4	0.0	20.4
Assets	1 064.31	5.6	1 069.9
Liabilities	665.0	–315.2	349.8
Employees (FTE) as of 31 December	4 527	7	4 534

¹ thereof investments in associated companies: CHF 2.6 million

Geographical information 2024

Regions (in CHF m)	Europe	Americas	Asia	Other	Total
Net sales1	591.1	297.3	117.8	5.1	1 011.3
Non-current assets2	376.4	151.4	46.1	0.0	573.9

¹ Net sales in Switzerland are not material.

Information on major customers 2024

There are no individual customers who account for more than 10% of the Group's net sales.

² Non-current assets exclude deferred tax assets, investments in associated companies, and financial assets.

Operating segments 2023

Operating segments (in CHF m)		3A Composites Other/Eliminations	Group
Net sales	1 069.6	0.0	1 069.6
Depreciation and amortization	–39.4	0.0	–39.4	20
Impairment	0.0	0.0	0.0	20
EBIT	50.8	–0.5	50.3
Financial income			0.5
Financial expenses			–17.3
Share of result of associated companies			0.4
Income before taxes			33.9
Income taxes			–6.3
Net income			27.6
Capital expenditure in property, plant and equipment	30.7	0.0	30.7
Capital expenditure in intangible assets	0.4	0.0	0.4
Total capital expenditure	31.1	0.0	31.1
Assets	1 040.51	2.2	1 042.7
Liabilities	647.9	–311.6	336.3
Employees (FTE) as of 31 December	4 591	7	4 598

¹ thereof investments in associated companies: CHF 2.4 million

Geographical information 2023

Regions (in CHF m)	Europe	Americas	Asia	Other	Total
Net sales1	620.8	300.0	129.3	19.5	1 069.6
Non-current assets2	383.9	137.1	26.6	9.8	557.4

¹ Net sales in Switzerland are not material.

Information on major customers 2023

There are no individual customers who account for more than 10% of the Group's net sales.

² Non-current assets exclude deferred tax assets, investments in associated companies, and financial assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. TRADE RECEIVABLES

(in CHF m)	2024	2023
Total trade receivables	148.0	169.0
– less allowance for doubtful debts	–8.8	–9.1
Total trade receivables – net	139.2	159.9

Age analysis of trade receivables:

2024 (IN CHF M)	Gross 31.12.2024	Doubtful debt allowance 31.12.2024	Net 31.12.2024
Not due	119.6	–0.7	118.9
Overdue up to one month	15.5	–0.5	15.0
Overdue between 1 and 2 months	3.6	–0.2	3.4
Overdue between 2 and 3 months	0.5	–0.1	0.4
More than 3 months overdue	8.8	–7.3	1.5
Total overdue	28.4	–8.1	20.3
Total	148.0	–8.8	139.2

2023 (in CHF m)	Gross 31.12.2023	Doubtful debt allowance 31.12.2023	Net 31.12.2023
Not due	142.2	–0.9	141.3
Overdue up to one month	14.6	–1.0	13.6
Overdue between 1 and 2 months	2.4	–0.3	2.1
Overdue between 2 and 3 months	0.4	–0.1	0.3
More than 3 months overdue	9.4	–6.8	2.6
Total overdue	26.8	–8.2	18.6
Total	169.0	–9.1	159.9

Movements on the allowance for doubtful debts:

(in CHF m)	2024	2023
Balance as of 1 January	–9.1	–9.3
Doubtful debt allowance used	0.3	0.4
Doubtful debt allowance released	2.3	0.9
Doubtful debt allowance increased	–1.9	–1.8
Exchange rate differences	–0.4	0.7
Balance as of 31 December	–8.8	–9.1

The credit risks were taken into account by means of appropriate doubtful debt allowances.

2. INVENTORIES

(in CHF m)	2024	2023
Raw materials and production parts	90.1	92.5
Semi-finished goods and work in progress	34.5	29.9
Finished goods and trading goods	67.6	63.0
Total	192.2	185.4

The net value of the inventories is after value adjustments of CHF 12.7 million (previous year: CHF 13.0 million). As in the prior year, all finished goods are stated at manufacturing cost. The value adjustment was determined on the basis of the turnover and range of the inventories. As in the prior year, no reinstatements were recorded as income.

As in the prior year, no inventories are encumbered by rights of lien.

3. ASSETS HELD FOR SALE

As part of the "Accelerate"-program, a manufacturing facility is sold.

The assets held for sale were stated at carrying amount and comprised the following asset category:

(in CHF m)	2024	2023
Property, plant and equipment	6.1	0.0
Total	6.1	0.0

There are no cumulative income or expenses included in OCI relating to the assets held for sale.

4. PROPERTY, PLANT AND EQUIPMENT

2024 (IN CHF M)	Land & buildings	Machinery & tools	IT equipment & furnishings	Vehicles	Assets under construction	Total
COST
Balance as of 1 January 2024	264.6	407.1	19.5	9.9	36.5	737.6
Change in scope of consolidation	2.5	8.1	0.0	0.0	0.0	10.6
Additions	21.6	3.6	0.8	2.7	14.2	42.9
Disposals	–20.1	–15.7	–0.5	–1.8	0.0	–38.1
New classifications	–6.8	16.3	0.4	0.8	–19.9	–9.2	3
Exchange rate differences	7.7	14.0	0.4	0.3	0.8	23.2
Balance as of 31 Dec 2024	269.5	433.4	20.6	11.9	31.6	767.0
ACCUMULATED DEPRECIATION Balance as of 1 January 2024 Depreciation for the year	–111.3 –17.3	–271.7 –21.3	–16.0 –1.1	–6.5 –1.8	0.0 0.0	–405.5 –41.5
Impairment Disposals	–1.2 13.4	–4.4 15.5	–0.1 0.5	0.0 1.7	0.0 0.0	–5.7 31.1
New classifications	3.0	0.0	0.0	0.0	0.0	3.0	3
Exchange rate differences	–3.0	–8.8	–0.4	–0.3	0.0	–12.5
Balance as of 31 Dec 2024	–116.4	–290.7	–17.1	–6.9	0.0	–431.1
Net book value 31 Dec 2024	153.1	142.7	3.5	5.0	31.6	335.9
Net book value of pledged property, plant and equipment						0.0

Information on leased property, plant and equipment can be found in note 11.

2023 (in CHF m)	Land & buildings	Machinery & tools	IT equipment & furnishings	Vehicles	Assets under construction	Total
COST
Balance as of 1 January 2023	251.4	392.0	20.1	9.9	60.4	733.8
Change in scope of consolidation	7.4	1.5	0.1	0.2	7.3	16.5
Additions	14.1	7.9	0.8	1.3	19.8	43.9
Disposals	–6.4	–2.1	–0.7	–1.3	0.0	–10.5
New classifications	13.8	33.9	0.4	0.5	–48.6	0.0
Exchange rate differences	–15.7	–26.1	–1.2	–0.7	–2.4	–46.1
Balance as of 31 Dec 2023	264.6	407.1	19.5	9.9	36.5	737.6
ACCUMULATED DEPRECIATION Balance as of 1 January 2023	–106.2	–271.2	–16.4	–6.6	0.0	–400.4
Depreciation for the year	–16.3	–18.5	–1.3	–1.6	0.0	–37.7
Impairment	0.0	0.0	0.0	0.0	0.0	0.0
Disposals	4.5	1.4	0.7	1.3	0.0	7.9
New classifications	0.0	0.0	0.0	0.0	0.0	0.0
Exchange rate differences	6.7	16.6	1.0	0.4	0.0	24.7
Balance as of 31 Dec 2023	–111.3	–271.7	–16.0	–6.5		0.0 –405.5
Net book value 31 Dec 2023	153.3	135.4	3.5	3.4	36.5	332.1
Net book value of pledged property, plant and equipment						0.0

Information on leased property, plant and equipment can be found in note 11.

5. BIOLOGICAL ASSETS

The balsa wood which 3A Composites uses as core material for composite material applications in the wind power, marine, automotive and other industrial markets is cultivated and processed at its own plantations in Ecuador and Papua New Guinea.

Balsa (Ochroma pyramidale) is a fast-growing tree which can reach heights of up to 30 meters. Balsa is very soft and light and has an open-pored surface structure. It is also very firm and rigid relative to its weight, has excellent fatigue properties, and shows high impact resistance. Balsa bonds very well with all common types of adhesive and can be processed using most standard timber processing techniques.

At the end of 2024, 3A Composites had 132 (previous year: 131) planted plantations with a surface area of 9 798 hectares (previous year: 9 192 ha). This makes 3A Composites the largest plantation owner and balsa wood producer. In 2024, a total of 28 745 546 board feet (previous year: 29 712 076 FBM) of green sawn timber were produced from own plantations. A "board foot" is a unit of volume for timber. The quantity produced is equivalent to 67 832 cubic meters (previous year: 70 113 m3). Balsa takes an average of five years to grow from seeding to harvesting of trees.

Biological assets are measured at their fair value less cost to sell using a net present value (NPV) technique to discount the net of future cash inflows and outflows associated with forest production activities up to the time of anticipated harvesting to current values at an appropriate discount rate.

Key assumptions underlying the NPV calculation (level 3 valuation) are:

• expected volumes of merchantable timber at the anticipated harvest time (which is typically about 5 years after seeding) that will be realized from standing trees considering the most recent information of planted areas and current timber recovery rates;
• expected market prices over a five-year valuation period derived from the average prices paid for green balsa lumber sourced from independent suppliers, based on an internal assessment of the future price development;
• expected maintenance costs until the harvest time derived from the average costs incurred during the last years; inflation rates are taken into consideration to forecast future cost increases;
• expected harvesting, sawmilling and transportation costs derived from the average costs paid to independent contractors during the last years; inflation rates are taken into consideration to anticipate future cost increases; and
• the discount rate is the weighted average cost of capital (WACC) of the production company derived from the Capital-Asset-Pricing-Model.

If the market value for green lumber had been 5% higher or lower with all other variables unchanged, the value of the biological assets would have been CHF 3.9 million (previous year: CHF 3.1 million) higher or lower respectively.

Book value as of 31 December	46.8	40.3
Exchange rate differences	3.0	–4.1
Wind damage	–1.0	–1.6
Decrease as a result of harvest	–3.1	–2.5
Increase as a result of growth and maintenance measures	3.0	7.3
Gain or loss as a result of change in market value less selling costs	4.6	0.2	19
Book value as of 1 January	40.3	41.0
(in CHF m)	2024	2023

The effects from growth and maintenance measures, harvest, as well as wind damage are recognized in material expenses.

The key risks to balsa plantations are wind damage and fungal disease which attacks the trunks of the young saplings. In light of risk analyses and cost-benefit calculations, 3A Composites has not taken out any specific insurance policies, but assumes these risks itself.

6. INVESTMENTS IN ASSOCIATED COMPANIES

The Group holds a 25% investment in Swedboard International AB, Katrineholm, Sweden.

As of 31 May 2023, the previous minority holding of 40% in JMB Wind Engineering was increased by taking over the remaining 60% of the stock.

Aggregated information of the associated companies:

(In CHF m)	2024	2023
Current assets	4.7	5.2
Non-current assets	1.6	0.4
Total assets	6.3	5.6
Current liabilities	0.7	0.7
Non-current liabilities	0.9	1.0
Total liabilities	1.6	1.7
Net assets	4.7	3.9
Net sales	6.3	6.0
Net income	0.9	0.7
Book value of the associated companies at year-end	2.6	2.4
Share result recognized by the Group	0.2	0.4

7. INTANGIBLE ASSETS (INCL. GOODWILL)

2024 (IN CHF M)	Goodwill	Patents & brands	Other	Total
COST
Balance as of 1 January 2024	123.7	58.2	44.3	226.2
Change in scope of consolidation	1.2	0.5	0.2	1.9
Additions	0.0	0.0	0.3	0.3
Disposals	0.0	0.0	–0.6	–0.6
Exchange rate differences	3.3	3.1	2.1	8.5
Balance as of 31 December 2024	128.2	61.8	46.3	236.3
ACCUMULATED AMORTIZATION
Balance as of 1 January 2024	0.0	–7.4	–33.8	–41.2
Amortization for the year	0.0	–0.2	–1.7	–1.9
Disposals	0.0	0.0	0.6	0.6
Exchange rate differences	0.0	–0.9	–1.7	–2.6
Balance as of 31 December 2024	0.0	–8.5	–36.6	–45.1
Net book value as of 31 December 2024	128.2	53.3	9.7	191.2

Since no end to the useful life of the capitalized brand names AIREX®, AKRYLON®, ALUCOBOND®, BALTEK®, DIBOND®, GATOR®, KAPA®, and PERSPEX® is foreseeable and as they are still maintained through marketing activities, they are defined as assets with an indefinite useful life. Brands with an acquisition value of CHF 53.3 million (previous year: CHF 50.8 million) will therefore not be amortized on a planned basis.

The goodwill and the capitalized brand names with indefinite useful life are allocated to the cashgenerating unit (CGU) 3A Composites division. The CGU represents the lowest level at which goodwill is monitored by Management.

The impairment test for the goodwill and the capitalized brand names with indefinite useful life is calculated annually or at the time of changes in circumstances by means of the DCF method. The basis for determining the recoverable amount is value-in-use. An impairment is recognized for the amount by which the book value exceeds the recoverable amount.

The impairment test was calculated using cash flow projections covering a five-year period. Cash flows beyond the five-year period were extrapolated using estimated growth rates. The underlying financial data consists of one budget year and four plan years. The discount rate used for the impairment test is 10.3% (previous year: 11.5%) and the long-term growth rate is 1% (previous year: 1%).

Budgeted cash flows are based on expectations for the market development and the growth rate is consistent with the forecasts included in industry reports. The discount rate used is pre-tax and basically corresponds to the weighted cost of capital.

The value of the goodwill was additionally tested by means of sensitivity analyses. No change in the material assumptions, realistically estimated, leads to the fact that the book value exceeds the recoverable amount.

As in the previous year, no development expenses were capitalized in the year under review. Development expenses amounted to CHF 6.9 million (previous year: CHF 6.9 million).

2023 (in CHF m)	Goodwill	Patents & brands	Other	Total
COST
Balance as of 1 January 2023	114.9	61.4	41.0	217.3
Change in scope of consolidation	14.3	0.4	5.8	20.5
Additions	0.0	0.0	0.4	0.4
Disposals	0.0	0.0	0.0	0.0
Exchange rate differences	–5.5	–3.6	–2.9	–12.0
Balance as of 31 December 2023	123.7	58.2	44.3	226.2
ACCUMULATED AMORTIZATION
Balance as of 1 January 2023	0.0	–8.3	–34.8	–43.1
Amortization for the year	0.0	–0.2	–1.5	–1.7
Disposals	0.0	0.0	0.0	0.0
Exchange rate differences	0.0	1.1	2.5	3.6
Balance as of 31 December 2023	0.0	–7.4	–33.8	–41.2
Net book value as of 31 December 2023	123.7	50.8	10.5	185.0

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8. CURRENT FINANCIAL LIABILITIES

(in CHF m)	2024	2023
Current lease liabilities	11.2	9.3
Current bank loans	55.0	65.0
Other current financial liabilities	0.1	0.7
Total	66.3	75.0

9. ACCRUED EXPENSES AND DEFERRED INCOME

(in CHF m)	2024	2023
Outstanding volume discounts and customer credits	12.3	11.5
Personnel costs (vacation/flexitime/overtime/bonuses/etc.)	18.9	20.4
Cost of materials/overheads	3.2	2.6
Other accrued expenses and deferred income	13.2	13.0
Total	47.6	47.5

10. NON-CURRENT FINANCIAL LIABILITIES

(in CHF m)	2024	2023
Non-current lease liabilities	41.9	30.8
Other non-current financial liabilities	0.2	4.3
Total	42.1	35.1
The maturity of the non-current financial liabilities are as follows:
– 1 to 5 years	31.1	25.7
– more than 5 years	11.0	9.4
Total	42.1	35.1

11. LEASES

The main leases are offices and factory facilities, warehouses, and land for plantations. These leases typically run for a period of several years. Some leases contain extension options which are exercisable only by the Group companies and not by the lessor. Some leases provide for rent payments that are based on changes in local price indices.

The leases for warehouses and factory facilities were entered as combined leases of land and buildings.

Right-of-use assets

2024 (IN CHF M)	Land & buildings	IT equipment & furnishings	Vehicles	Total
Balance as of 1 January 2024	38.2	0.5	1.6	40.3
Change in scope of consolidation	1.5	0.0	0.0	1.5
Additions	20.5	0.0	2.3	22.8
Depreciation for the year	–11.2	–0.2	–1.0	–12.4
Disposals	–1.3	0.0	–0.1	–1.4
Exchange rate differences	1.2	0.0	–0.1	1.1
Balance as of 31 December 2024	48.9	0.3	2.7	51.9

2023 (in CHF m)	Land & buildings	IT equipment & furnishings	Vehicles	Total
Balance as of 1 January 2023	37.1	0.3	1.7	39.1
Change in scope of consolidation	1.9	0.4	0.1	2.4
Additions	12.3	0.1	0.8	13.2
Depreciation for the year	–10.3	–0.2	–1.0	–11.5
Disposals	–0.1	0.0	0.0	–0.1
Exchange rate differences	–2.7	–0.1	0.0	–2.8
Balance as of 31 December 2023	38.2	0.5	1.6	40.3

Amounts recognized in the income statement

(in CHF m)	2024	2023
Depreciation of right-of-use assets	–12.4	–11.5
Interest expenses – leases	–2.7	–2.1
Expenses relating to leases of low-value assets	–0.1	–0.1
Expenses relating to short-term leases	–0.9	–1.4
Income from sub-leasing right-of-use assets	0.0	0.0

The rental income from own assets recognized in the year under review was CHF 0.6 million (previous year: CHF 0.6 million).

Amounts recognized in the cash flow statement

(in CHF m)	2024	2023
Total cash-out for leases	–15.5	–14.5

Future minimum lease payments expected to be received under non-cancellable operating leases

(in CHF m)	2024	2023
– due in one year	0.6	0.5
– due in 1 to 2 years	0.6	0.5
– due in 2 to 3 years	0.6	0.5
– due in 3 to 4 years	0.6	0.5
– due in 4 to 5 years	0.6	0.6
– due in more than 5 years	0.7	1.2
Total	3.7	3.8

12. RECONCILIATION OF FINANCIAL LIABILITIES

2024 (IN CHF M)	Balance as of 1 January	Cash inflow from financing activities	Cash outflow from financing activities	Change in scope of consolidation	Other non-cash movements	Exchange rate differences	Balance as of 31 December
Current interest bearing financial liabilities	75.0	0.0	–22.4	0.3	13.0	0.4	66.3
Non-current interest bearing financial liabilities	35.1	0.0	–4.1	1.2	9.0	0.9	42.1
Total	110.1	0.0	–26.5	1.5	22.0	1.3	108.4

2023 (in CHF m)	Balance as of 1 January	Cash inflow from financing activities	Cash outflow from financing activities	Change in scope of consolidation	Other non-cash movements	Exchange rate differences	Balance as of 31 December
Current interest bearing financial liabilities	52.1	30.0	–19.3	0.9	12.0	–0.7	75.0
Non-current interest bearing financial liabilities	29.5	0.0	–0.1	6.5	1.6	–2.4	35.1
Total	81.6	30.0	–19.4	7.4	13.6	–3.1	110.1

13. EMPLOYEE BENEFITS

The Group operates various employee benefit plans in and outside of Switzerland for employees who satisfy the participation criteria. Among these plans are both defined benefit plans and defined contribution plans that cover the majority of employees for death, disability, and retirement.

Defined contribution plans

The Group offers defined contribution plans for staff who meet the relevant admission criteria. The assets of these plans are spun off into legal units which are independent of the company and are not accessible to the employer. The company is obliged to transfer a predefined percentage of employees' annual salaries to the pension plans. In the case of some of these plans, the employee also pays contributions. These contributions are typically deducted from salaries by the employer and are also transferred to the pension plan. Apart from the contribution payments and the transfers of employee contributions, there are currently no other obligations on the part of the employer.

For the 2024 financial year, the employer's contribution to defined contribution plans amounted to CHF 0.6 million (previous year: CHF 0.6 million).

Defined benefit plans

The Group finances defined benefit pension plans for employees who meet the relevant admission criteria. The main plans of this type are located in Switzerland, Germany, the USA, and Ecuador.

Pension plans in Switzerland

The Group operates a staff pension plan in Switzerland. The assets of this plan are segregated into an autonomous foundation. The companies have joint pension commissions which decide on the regulations.

In addition, there is an autonomous foundation. There are no direct entitlements to this foundation. For example, in the event of underfunding, restructuring contributions can be made from this foundation.

Pension benefits are based on retirement savings. The annual retirement credits and interest will be credited to these retirement savings (there is no possibility of negative interest). When insured members come to retire, they will be able to choose whether to take a pension for life, which will include a reversionary spouse's pension, or a lump sum.

In addition to retirement benefits, the plan benefits will also include disability and partner pensions. These will be calculated as a percentage of the employee's annual pensionable salary. Insured members may also buy into the scheme to improve their pension provision up to the maximum amount permitted under the rules or may withdraw funds early for the purchase of a residential property for their own use. On leaving the company, the retirement savings will be transferred to the pension institution of the new employer or to a vested benefits institution. This type of benefit may result in pension payments varying considerably between individual years.

In defining the benefits, the minimum requirements of the Law on Occupational Retirement, Survivors and Disability Pension Plans (BVG) and its implementing provisions must be observed. The BVG defines the minimum pensionable salary and the minimum retirement credits. The interest rate applicable to these minimum retirement savings is set by the Swiss Federal Council at least once every two years. In 2024, the rate was 1.25% (previous year: 1.00 %).

The structure of the plan and the legal provisions of the BVG mean that the employer is exposed to actuarial risks. The main risks are investment risk, interest risk, disability risk, and the risk of longevity. The employee and employer's contributions are set by the Boards of Trustees. The employer funds at least 50% of the necessary contributions. In the event of a shortfall, recapitalization contributions to eliminate the gap in coverage may be levied from both the employer and the employee.

In 2024, the retirement credits were increased, resulting in plan amendment costs of CHF 0.3 million.

Pension plans in Europe

The companies in Germany have a company retirement pension scheme which is based on different rules and company agreements. Individual pension solutions are also in place for members of senior management. In principle, members are entitled to pension benefits in the event of old age, disability or death. Beneficiaries are entitled to life-long pension benefits or lump-sum payments, depending on the rules laid down in the pension regulations. Apart from the externally financed relief fund, the plans do not have any assets segregated from the company. The pension benefits are mostly financed by the employer. When employees leave the company before pension benefits are due, their prospective rights to the pension benefits are preserved in accordance with the statutory rules.

The structure of the plan and the legal provisions (German Company Pensions Act) mean that the employer is exposed to actuarial risks. The main risks are the risk of longevity, the risk of salary trends, and the risk entailed in compensating for the impact of inflation on pensions.

In 2024, Polycasa GmbH, Mainz was restructured. This led to a plan curtailment and a reduction in pension entitlements of CHF 1.0 million.

Plans based on local legal requirements are in place in Belgium and Slovakia.

Pension plans in Americas

In the USA, staff who leave the Group after the age of 62 and who meet the vesting criteria are entitled to health insurance benefits under the Group's pension plan. The plan reimburses a fixed age-dependent amount of the health insurance costs. This means that the plan is not subject to the risk of the future development of medical expenses. Thus, the main residual actuarial risk lies in future changes in life expectancy. The plan has no assets segregated from the Group and the benefits are paid directly by the employer.

In Ecuador, all employees are entitled to a pension for life and a lump-sum retirement payment once they have 25 years of service, but not before reaching the of age 55. The benefits are calculated on the basis of the average insured annual salary. Entitlement is based on the general labor law. The main actuarial risks lie in the development of salaries (inflation) and the future changes in life expectancy. The plan has no assets segregated from the Group and the benefits are paid directly by the employer.

Actuarial assumptions

The most recent actuarial valuations of the present values of the defined benefit obligations and the service costs were conducted as of 31 December 2024 by independent actuaries in accordance with the projected unit credit method. The fair value of the plan assets was determined as of 31 December 2024 on the basis of the information known at the time when the annual financial statements were prepared.

The main assumptions on which the actuarial calculations are based can be summarized as follows:

				2024				2023
31 December	Switzerland	EU	Americas	Weighted	Switzerland	EU	Americas	Weighted
Discount rate	1.10%	3.48%	4.99%	1.84%	1.50%	3.55%	4.72%	2.14%
Future salary increases	1.25%	2.50%	1.43%	1.56%	1.75%	2.50%	2.97%	1.98%
Future pension adjustments	0.00%	1.86%	2.59%	0.56%	0.00%	1.87%	0.00%	0.46%
Interest on retirement savings	1.25%	n/a	n/a	1.25%	1.50%	n/a	n/a	1.50%
(in years) Life expectancy at age 65 Year of birth 1960 / 1959
– Men	23	21	20		23	21	20
– Women	25	24	20		25	24	22
Year of birth 1979 / 1978
– Men	25	24	21		25	24	21
– Women	27	27	22		27	26	23

Amounts recognized in the income statement and in shareholders' equity

Pension expense recognized in the income statement:

31 December	2024
(in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Service costs
– Current service costs	2.3	0.8	0.6	3.7	2.0	0.7	0.4	3.1
– Past service costs	0.2	–1.0	0.0	–0.8	–2.2	0.0	0.0	–2.2
– Plan settlements	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net interest expense	0.1	1.2	0.3	1.6	0.2	1.3	0.3	1.8
Total expense recognized in the income statement	2.6	1.0	0.9	4.5	0.0	2.0	0.7	2.7

Current service costs include technical administrative expenses of CHF 0.04 million for 2024 and CHF 0.04 million for 2023.

Remeasurements recognized in other comprehensive income:

31 December	2024
(in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Actuarial (gains) / losses
– Change in demographic assumptions	0.0	0.0	–0.2	–0.2	0.0	0.0	0.0	0.0
– Change in financial assumptions	3.4	0.1	–0.7	2.8	6.4	1.9	0.5	8.8
Experience adjustments	0.5	0.6	–0.2	0.9	–2.9	–0.7	–0.1	–3.7
Return on plan assets (excluding net interest expense)	–1.5	–0.3	0.0	–1.8	–4.5	0.2	0.0	–4.3
Total expense recognized in other comprehensive income	2.4	0.4	–1.1	1.7	–1.0	1.4	0.4	0.8
Total pension expense	5.0	1.4	–0.2	6.2	–1.0	3.4	1.1	3.5

Changes in the present value of defined benefit obligations and in the fair value of plan assets

Changes in the present values of defined benefit obligations:

31 December				2024				2023
(in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Balance as of 1 January	109.2	37.3	6.5	153.0	108.8	37.6	6.7	153.1
Current service cost	2.3	0.8	0.6	3.7	2.0	0.7	0.4	3.1
Plan participants' contributions	1.7	0.1	0.0	1.8	1.7	0.1	0.0	1.8
Interest expenses on the present value of the
obligations	1.6	1.3	0.3	3.2	2.2	1.4	0.3	3.9
Actuarial (gains) / losses	3.8	0.7	–1.0	3.5	3.4	1.2	0.4	5.0
Past service costs	0.3	0.0	0.0	0.3	–2.2	0.0	0.0	–2.2
Plan settlements	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Plan curtailments	0.0	–1.0	0.0	–1.0	0.0	0.0	0.0	0.0
Business acquisitions	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Sale of business	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Benefits paid and net vested benefits through plan assets	–7.0	0.0	0.0	–7.0	–6.7	–0.1	0.0	–6.8
Benefits paid by employer	0.0	–1.3	–0.7	–2.0	0.0	–1.3	–0.8	–2.1
Exchange rate differences	0.0	0.4	0.5	0.9	0.0	–2.3	–0.5	–2.8
Balance as of 31 December	111.9	38.3	6.2	156.4	109.2	37.3	6.5	153.0

Changes in the fair values of plan assets:

				2024				2023
31 December (in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Balance as of 1 January	103.2	3.4	0.0	106.6	100.0	3.4	0.0	103.4
Plan participants' contributions	1.7	0.1	0.0	1.8	1.7	0.1	0.0	1.8
Employer's contribution	1.7	0.2	0.0	1.9	1.7	0.2	0.0	1.9
Interest income on assets	1.6	0.1	0.0	1.7	2.1	0.1	0.0	2.2
Return on plan assets (excluding net interest expense)	1.5	0.3	0.0	1.8	4.4	–0.1	0.0	4.3
Assets distributed on settlements	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Sale of business	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Benefits paid and net vested benefits through plan assets	–7.0	0.0	0.0	–7.0	–6.7	–0.1	0.0	–6.8
Exchange rate differences	0.0	0.0	0.0	0.0	0.0	–0.2	0.0	–0.2
Balance as of 31 December	102.7	4.1	0.0	106.8	103.2	3.4	0.0	106.6

Net position of defined benefit obligation in the balance sheet

				2024				2023
31 December (in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Present value of funded obligations	111.9	13.6	0.0	125.5	109.2	12.6	0.0	121.8
Fair value of plan assets	–102.7	–4.1	0.0	–106.8	–103.2	–3.4	0.0	–106.6
Under/(over) funding	9.2	9.5	0.0	18.7	6.0	9.2	0.0	15.2
Present value of unfunded obligations	0.0	24.7	6.2	30.9	0.0	24.7	6.5	31.2
Assets not available to company	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Recognized defined benefit obligations	9.2	34.2	6.2	49.6	6.0	33.9	6.5	46.4

Allocation of plan assets

The assets mainly originate from the pension plans in Switzerland. The Boards of Trustees issue investment guidelines for the plan assets which include the tactical asset allocation and the benchmarks for comparing the results with a general investment universe. The assets are widely diversified.

The Swiss pension plans are also subject to the legal requirements on diversification and safety laid down by the BVG (Federal Law on Occupational Retirement, Survivors and Disability Pension Plans). The same investment guidelines apply to all companies affiliated to the collective foundation. The influence of the employer on the investment policy is therefore limited.

As shares are also held via fund shares, it cannot be ruled out that these fund shares contain shares in the Group. It also cannot be ruled out that the collective foundation directly holds shares in the Group.

The plan assets mainly consist of the following categories of securities:

				2024				2023
31 December (in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Equities	34.0	0.0	0.0	34.0	32.0	0.0	0.0	32.0
Bonds	22.2	2.0	0.0	24.2	23.9	1.5	0.0	25.4
Alternative financial assets	13.8	0.0	0.0	13.8	16.6	0.0	0.0	16.6
Real estate	21.8	0.0	0.0	21.8	23.2	0.0	0.0	23.2
Qualified insurance securities	0.0	2.1	0.0	2.1	0.0	1.9	0.0	1.9
Cash and cash equivalents and other investments	10.9	0.0	0.0	10.9	7.5	0.0	0.0	7.5
Total	102.7	4.1	0.0	106.8	103.2	3.4	0.0	106.6

The collective foundation does not provide a breakdown into listed and unlisted investments. Based on the investment guidelines, however, it can be assumed that most of the assets are invested in listed investments.

In 2024, the assets generated a gain of CHF 3.4 million (previous year: gain of CHF 6.6 million). In the coming year, employer's contributions are expected to amount to CHF 1.8 million (previous year: CHF 1.9 million), while pension payments to former employees are expected to amount to CHF 2.0 million (previous year: CHF 2.3 million).

Breakdown of defined benefit obligations among members and terms of obligations

The following table provides a breakdown of the defined benefit obligations among active insured members, former members with vested benefits and members receiving pensions. The terms of the obligations are also given:

31 December				2024				2023
(in CHF m)	Switzerland	EU	Americas	Total	Switzerland	EU	Americas	Total
Active insured members	75.4	18.1	4.4	97.9	74.4	19.0	3.7	97.1
Former members with vested benefits	0.0	2.8	0.0	2.8	0.0	2.8	0.0	2.8
Members receiving pensions	36.5	17.4	1.8	55.7	34.8	15.5	2.8	53.1
Total	111.9	38.3	6.2	156.4	109.2	37.3	6.5	153.0
(in years)
Term of obligations	13.5	13.5	6.6	13.2	13.3	13.6	8.5	12.9

Sensitivities of the defined benefit obligations to changes in assumptions

A common feature of all plans is that the interest rate for calculation purposes is a key factor in calculating the present value of the defined benefit obligations. The other key factors differ from plan to plan. In the geographical breakdown presented here, the plans share the same characteristics and the sensitivities are therefore presented on this basis.

When calculating the sensitivities, only the assumption given is changed; all other assumptions remain unchanged:

			2024		2023
31 December (in CHF m)		+0.25%	–0.25%	+0.25%	–0.25%
All countries	Discount rate	–4.7	5.0	–4.4	4.7
All countries	Future salary increases	0.3	–0.3	0.4	–0.4
Switzerland	Interest on retirement assets	0.6	–0.6	0.6	–0.6
EU	Future pension adjustments	1.0	–1.0	0.9	–0.9

Reconciliation to the balance sheet

31 December (in CHF m)	2024	2023
Defined benefit obligations	49.6	46.4
Other long-term employee benefits	3.1	3.6
Termination benefits	0.9	0.8
Total	53.6	50.8

The other long-term employee benefits and the termination benefits include programs for long-service awards and other payments dependent on length of service, partial retirement agreements in Germany, as well as a Long-term Incentive plan for selected employees.

14. PROVISIONS

(in CHF m)	Guarantees	Restruc turings	Environmental obligations	Other	Total 2024	Total 2023
Balance as of 1 January	4.1	0.0	5.9	3.9	13.9	17.0
Consumption with neutral impact on income	–0.8	0.0	0.0	–0.3	–1.1	–2.9
Unused amounts reversed and released to income	–1.1	0.0	–3.5	–1.7	–6.3	–2.5
Additional provisions charged to income	1.7	8.6	0.0	1.3	11.6	2.8
Exchange rate differences	0.1	–0.1	0.2	0.0	0.2	–0.5
Balance as of 31 December	4.0	8.5	2.6	3.2	18.3	13.9
of which:
– current provisions	2.2	8.5	0.3	1.8	12.8	3.7
– non-current provisions	1.8	0.0	2.3	1.4	5.5	10.2
Expected use of provisions:
– within one year	2.2	8.5	0.3	1.8	12.8	3.7
– in 2 to 5 years	1.7	0.0	2.3	1.2	5.2	9.5
– more than 5 years	0.1	0.0	0.0	0.2	0.3	0.7

Guarantees

The provision for guarantees considers any costs arising from the warranty given on products sold. The calculation is based on turnover, past experience, and on individual cases.

Restructuring

Restructuring provisions cover obligations in connection with restructuring measures, which mainly includes personnel expenses related to the "Accelerate"-program.

Environmental obligations

Provisions for environmental obligations cover the estimated costs for the remediation of contaminated sites.

Other provisions

The other provisions mainly cover risks arising from acquisitions and various risks that could arise in the normal course of business.

The amount of the provisions is based on the outflow of resources which management anticipates will be needed to cover the liabilities.

15. SHARE CAPITAL

	2024	2023
Number of registered shares issued with a par value of CHF 1	1 431 808	1 431 808
Share capital as of 31 December (in CHF)	1 431 808	1 431 808
Conditional capital (in CHF)	132 600	132 600

Treasury shares

Schweiter Technologies AG holds 84 treasury shares in the year under review (previous year: 0).

Authorized capital

As of 31 December 2024, there is no authorized capital.

Conditional capital

As of 31 December 2024, the company's share capital may be increased ex rights by up to 132 600 registered shares, which must be fully paid in:

• a) up to a sum of CHF 32 600 through the exercise of employee option rights and
• b) up to a sum of CHF 100 000 through the exercise of option or conversion rights granted in conjunction with bonds or similar paper issued by the company. So far, no such bonds have been issued.

Dividend

At the Annual General Meeting on 10 April 2024, the shareholders approved the distribution of a gross dividend of CHF 15.00 per share for the financial year 2023 (previous year: CHF 20.00 per share). The distribution amounted to a total of CHF 21.5 million.

For the financial year 2024, the Board of Directors will propose to the Annual General Meeting of 9 April 2025 that a gross dividend of CHF 15.00 per registered share shall be distributed.

16. SHARE-BASED COMPENSATION

As part of the short-term variable compensation for the financial year 2024, the CEO and the CFO will be issued shares in March 2025. Since the 2023 Annual General Meeting, the compensation of the Board of Directors has also included a share-based component.

The shares for the compensation of the CEO and CFO are subject to a vesting period of three years. The fair value of the issued shares will be determined in February 2025 for the CEO and CFO and in April 2025 for the Board of Directors.

The expenses for share-based compensation settled in equity instruments recognized in the financial year under review amounted to CHF 475 000 (previous year: CHF 593 000).

		17. NET SALES

(in CHF m)	2024	2023
Net sales from deliveries of goods	1 007.1	1 065.2
Net sales from services	4.2	4.4
Total	1 011.3	1 069.6

18. OTHER OPERATING EXPENSES

(in CHF m)	2024	2023
Direct sales and distribution costs	–72.3	–80.7
Purchasing and production overheads	–90.9	–88.4
Sales and marketing overheads	–12.0	–10.6
Administration overheads and capital taxes	–23.5	–22.4
Development overheads	–1.7	–1.6
Cost of premises	–1.1	–1.5
Other operating expenses	–1.3	–1.6
Total	–202.8	–206.8

19. OTHER OPERATING INCOME

(in CHF m)	2024	2023
Gain on sale of property, plant and equipment	2.2	1.7
Increase in market value of biological assets	4.6	0.2 5
Rental income	0.6	0.6
Insurance reimbursement	0.4	0.1
Release of provisions	4.6	1.2
Refund from U.S. Customs and Border Protection Agency (CBP)	0.0	2.6
Other income	1.6	2.2
Total	14.0	8.6

20. DEPRECIATION AND AMORTIZATION

(in CHF m)	2024	2023
Depreciation and impairments on property, plant and equipment	–47.2	–37.7 4
Amortization of intangible assets	–1.9	–1.7 7
Total	–49.1	–39.4

21. FINANCIAL INCOME

(in CHF m)	2024	2023
Interest income	0.7	0.5
Foreign exchange gains (net)	1.3	0.0
Other financial income	3.2	0.0
Total	5.2	0.5

Other financial income includes the gain from the revaluation of the purchase liability for the remaining 40% of the shares in Jiangsu ZNL Coating New Materials in the amount of CHF 3.2 million.

22. FINANCIAL EXPENSES

(in CHF m)	2024	2023
Interest expenses	–6.1	–5.7
Foreign exchange losses (net)	0.0	–8.7
Other financial expenses	–0.5	–2.9
Total	–6.6	–17.3

In connection with the first-time consolidation of JMB Wind Engineering in 2023, the revaluation of the Group's existing 40% interest resulted in a loss of CHF 2.6 million which is included in other financial expenses. In addition, exchange differences of CHF 0.6 million were reclassified to the financial expenses.

23. INCOME TAXES

Current taxes	–9.7	–9.7
Deferred taxes	0.7	3.4
Total	–9.0	–6.3

Deferred taxes are attributable to differences between the standard Group valuation and the tax valuation in the individual financial statements. The differences partly relate to the use of the declining balance method of depreciation and the creation of reserves, as acceptable for tax purposes, but are mainly due to provisions for pension liabilities, the fair value measurement of the biological assets, the capitalization of tax loss carry-forwards accepted for tax purposes, and purchase price allocations for business combinations.

The Group operates in countries which have enacted new legislation to implement the global minimum top-up tax (OECD Pillar 2). Therefore, the Group may be subject to the top-up tax in Switzerland and Ireland where the statutory tax rates are below the 15%. The Group estimates a top-up tax for 2024 in the amount of CHF 0.5 million.

The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to the global minimum top-up tax.

The following table shows the difference between effective tax expenditure and the mean tax expenditure anticipated on the basis of local tax rates:

Reconciliation of income taxes
(in CHF m)	2024	2023
Income before taxes	21.9	33.9
Income tax rate at head office	11.9%	12.0%
Tax expense anticipated	–2.6	–4.1
Differences owing to differing local tax rates	1.2	–1.1
Impact of non-taxable income	0.9	0.2
Impact of non-tax-deductible expenditure	–4.6	–2.7
Non-capitalized losses on current results carried forward	–3.6	–1.9
Use of non-capitalized tax losses carried forward	0.2	0.9
Impact of non-recoverable withholding taxes	–0.5	–0.4
Impact of tax rate changes on deferred taxes	0.2	0.3
Taxes from previous periods and other influencing factors	–0.2	2.5
Effective tax expense	–9.0	–6.3
Effective tax rate	41.2%	18.5%

Deferred taxes

The deferred tax assets and liabilities are attributable to the following balance sheet positions:

		31.12.2024		31.12.2023
(in CHF m)	Assets	Liabilities	Assets	Liabilities
Inventories	3.6	1.2	2.7	1.5
Property, plant and equipment, including right-of use assets	0.3	27.6	0.0	24.1
Intangible assets	0.0	8.8	0.0	9.0
Biological assets	0.0	8.3	0.0	6.6
Pension obligations	4.1	0.0	4.9	0.0
Provisions	1.4	0.1	1.9	0.1
Capitalized tax loss carry-forwards	4.0	0.0	3.5	0.0
Other, including lease liabilities	16.9	2.3	13.4	1.0
Total, gross	30.3	48.3	26.4	42.3
Netting	–17.7	–17.7	–13.3	–13.3
Total, net	12.6	30.6	13.1	29.0

The deferred tax assets and liabilities developed as follows:

(in CHF m)	2024	2023
Balance as of 1 January	–15.9	–18.9
Change in scope of consolidation	–2.1	–1.4
Recognized in the income statement	0.7	3.4
Recognized in other comprehensive income	0.2	0.2
Exchange rate differences	–0.9	0.8
Balance as of 31 December	–18.0	–15.9

As of 31 December 2024, the Group had temporary differences on unremitted earnings of Group companies in the amount of CHF 13.8 million (previous year: CHF 19.4 million). No deferred taxes were recorded for these taxable temporary differences.

As of 31 December 2024, the Group had non-capitalized tax loss carry-forwards, which can be offset against future earnings. These tax loss carry-forwards were not capitalized because of uncertainty over whether the future earnings will materialize. The tax loss carry-forwards for which no deferred tax assets were recognized will expire as follows:

(in CHF m)	2024	2023
– one year	7.3	0.0
– 2 to 5 years	13.9	7.8
– more than 5 years	9.4	2.5
– no expiration	73.8	76.9
Total	104.4	87.2

24. BUSINESS COMBINATIONS

On 26 February 2024, Schweiter Technologies acquired 60% of the shares in Jiangsu ZNL Coating New Materials, an innovative aluminum solid sheet manufacturer delivering high-end, multi-color façade solutions. The company is headquartered in Changzhou City in Jiangsu Province, China. The acquisition is complementing the architecture business solution portfolio and supports the sustainable growth vision in China and the Asian markets. Schweiter Technologies has the obligation to acquire the remaining 40% of the shares of the company.

The goodwill arising from the acquisition essentially reflects the value of the expected buyer-specific synergies. The goodwill is not tax-deductible. Transaction costs of CHF 0.1 million are included in other operating expenses.

Since the acquisition, ZNL has contributed net sales of CHF 2.5 million and net income of CHF –1.0 million in the year under review. The acquisition object was created as part of the transaction and would therefore not have been able to contribute to the Group's revenue and net income for the period of 1 January 2024 to the date of acquisition.

Non-controlling interests in an acquired company are recognized either at fair value or at the corresponding proportionate share of the net assets acquired. The decision is made individually for each acquisition. For the acquisition of ZNL, the Group has decided to recognize the non-controlling interests at its proportional share of the identifiable net assets acquired.

On 31 May 2023, Schweiter Technologies increased its 40% minority holding in JMB Wind Engineering, headquartered in Goleniów, Poland by taking over the remaining 60% of the stock. The company, with operations in Poland, Portugal, and Brazil is a leading developer and producer of core material kits – primarily balsa and PET products for wind turbines.

The goodwill arising from the acquisition essentially reflects the value of the expected buyer-specific synergies. The goodwill is not tax-deductible. Transaction costs of CHF 0.3 million are included in other operating expenses.

Since the acquisition, JMB Wind has contributed net sales of CHF 25.1 million and net income of CHF 1.3 million in 2023. Had the business combination already taken place on 1 January 2023, Management estimates that the Group's sales would have reached CHF 1 086.2 million and the net income CHF 28.2 million in 2023.

Adjustments were made to the accounting of property, plant and equipment, deferred tax liabilities and goodwill recognized at the time of acquisition.

Overview of the acquired assets and liabilities recognized at the time of acquisition

(in CHF m)	ZNL1	JMB Wind1
Cash and cash equivalents	0.0	6.2
Trade receivables2	0.0	6.2
Current income tax receivables	0.0	0.2
Advances to suppliers	0.0	0.1
Other receivables	0.1	0.6
Prepaid expenses and accrued income	0.0	0.2
Inventories	0.0	6.2
Total current assets	0.1	19.7
Property, plant and equipment	9.6	17.4
Intangible assets	0.7	6.2
Total non-current assets	10.3	23.6
Total assets	10.4	43.3
Current financial liabilities	–0.3	–0.9
Trade payables	0.0	–10.3
Other payables	0.0	–0.3
Accrued expenses and deferred income	0.0	–0.8
Current income tax payables	0.0	–0.3
Total current liabilities	–0.3	–12.6
Non-current financial liabilities	–1.2	–6.5
Deferred tax liabilities	–1.9	–1.5
Total non-current liabilities	–3.1	–8.0
Total liabilities	–3.4	–20.6
Total fair value of identifiable net assets acquired	7.0	22.7
Non-controlling interests	–2.8	0.0
Goodwill	2.0	13.5
Total	6.2	36.2
Cash and cash equivalents acquired	0.0	–6.2
Fair value of pre-existing 40% interest in JMB Wind Engineering	0.0	–14.5
Cash outflow from purchase of subsidiaries	6.2	15.5

¹ After the twelve-month measurement period

² The trade receivables comprise gross contractual amounts due of CHF 6.7 million and allowances for doubtful accounts of CHF 0.5 million.

25. EARNINGS PER SHARE

	2024	2023
Net income, attributable to the Schweiter shareholders (in CHF millions)	13.3	27.6
Average number of shares issued	1 431 808	1 431 808
Less average number of treasury shares	–63	0
Average number of shares outstanding	1 431 745	1 431 808
(in CHF)	2024	2023
Earnings per share
– undiluted	9.3	19.3
– diluted	9.3	19.3

26. CATEGORIES OF FINANCIAL INSTRUMENTS

In the previous year and the year under review, the financial assets comprise cash and cash equivalents, trade and other receivables and financial assets. The financial liabilities include trade and other payables, and financial liabilities.

With the exception of cash and cash equivalents, which are recognized at nominal value, all other financial instruments are measured at amortized costs. Their carrying amount is a reasonable approximation of fair value. The Group makes use of the exception not to disclose the fair value of lease liabilities.

27. TRANSACTIONS WITH RELATED PARTIES

Related parties (individuals and companies) include members of Group Management and the Board of Directors, significant shareholders, and companies under their control as well as pension funds. In principle, transactions with related parties are conducted at market terms.

The remuneration of the Board of Directors and Management was as follows:

(in CHF m)	2024	2023
Salaries and other short-term employee benefits	2.0	1.8
Post-employment benefits	0.4	0.4
Share-based compensation	0.5	0.6
Total	2.9	2.8

Further information about the remuneration of the Board of Directors and Management is disclosed in the Compensation Report.

28. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

In the ordinary course of business, the Group is involved in lawsuits, investigations, and proceedings, including product liability, environmental, labor law, etc.

The Group operates in countries where political, economic, social and legal developments could have an impact on the Group's operations. The effects of such risks which arise in the normal course of business are not foreseeable and are therefore not included in the accompanying consolidated financial statements. In connection with disposals and sale of properties made in the past years, the Group provided customary warranties. Schweiter and its subsidiaries may receive in the future notice of claims arising from these warranties which exceed the recorded provisions. In the year under review and in the previous year, no warranties or guarantees were issued in favor of third parties.

In addition, there are contingent liabilities amounting to a maximum of a single-digit millions amount in Swiss francs due to a retrospective application of higher VAT rates in India. The tax authorities in the state of Maharashtra have changed the classification of aluminum composite panels for the determination of the applicable VAT rate. According to the new classification, a higher amount of VAT for the sales of aluminum composite panels within the state of Maharashtra should be applied. The Indian company has been in compliance with this new VAT rate since the publication. However, the new VAT rate is applied retrospectively by the local tax authorities. The entire aluminum composite panel industry in India is affected by the amendment of the classification as well as by the retrospective application of the higher VAT rate. The local Indian company – as well as some competitors – has filed an objection against the new classification of aluminum composite panels and thus the application of a higher VAT rate. In addition, the company has filed an appeal with the tax authorities against the retrospective application of the new VAT rate. If the appeal is not upheld, the claims will be challenged in court. The company still assumes that a future cash outflow is not probable.

In February 2019, a class action lawsuit in Australia relating to the use of PE aluminum composite panels was filed against Schweiter's German subsidiary 3A Composites GmbH as well as other unrelated parties. The Group believes that the content of the claim is not justified. Schweiter has an international liability insurance policy that covers defense costs as well as the effects of a potential disadvantageous court decision up to the insured amounts.

An estimate of the potential financial impact cannot be made, as it is currently neither known whether the court will follow the plaintiffs' arguments and admit the claims nor the magnitude of the amount claimed.

In June 2021, a class action lawsuit in New Zealand relating to the use of PE and Plus aluminum composite panels was filed against Schweiter's German subsidiary 3A Composites GmbH as well as other unrelated parties.

The Group believes that the content of the claim is not justified. Schweiter has an international liability insurance policy that covers defense costs as well as the effects of a potential disadvantageous court decision up to the insured amounts.

An estimate of the potential financial impact cannot be made as (i) the jurisdiction of New Zealand courts is disputed, (ii) it is not yet determined whether any competent court will follow the plaintiffs' arguments, and (iii) the magnitude of the amount claimed is unknown.

Commitments to take delivery

Under purchase contracts for raw materials, commitments to take delivery amounting to CHF 388.2 million (previous year: CHF 403.2 million) and with maximum maturities of 4 years have been entered into in the course of ordinary business activities.

Outstanding commitments to take delivery of property, plant and equipment and intangible assets amounted to CHF 6.2 million (previous year: CHF 5.2 million).

29. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

No events occurred between the balance sheet date and the date of publication of this Annual Report which could have a significant impact on the consolidated financial statements 2024.

30. APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS

The Board of Directors of Schweiter Technologies AG approved the consolidated financial statements on 26 February 2025 and released the Annual Report for publication.

The financial statements will be presented to the Annual General Meeting for approval on 9 April 2025.

Statutory Auditor's Report

To the General Meeting of Schweiter Technologies AG, Steinhausen

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Schweiter Technologies AG and its subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 December 2024, the consolidated income statement, statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the consolidated financial statements (pages 120 to 163) give a true and fair view of the consolidated financial position of the Group as at 31 December 2024, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards and comply with Swiss law.

Basis for Opinion

We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISA) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We are independent of the Group in accordance with the provisions of Swiss law, together with the requirements of the Swiss audit profession, as well as those of the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

REVENUE RECOGNITION

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

REVENUE RECOGNITION

Consolidated net revenues for the year ended 31 December 2024 amounted to CHF 1,011.3 million. Revenues are an important metric to evaluate the Group's business performance and are therefore considered by internal and external stakeholders.

Revenues primarily include physical sales of products manufactured by the Group. Revenue is recognized when control of the products is transferred in accordance with the agreed conditions and incoterms.

The fact that different delivery times, contractual terms and incoterms have to be taken into account in determining the correct timing of revenue recognition results in a significant audit risk.

There is an additional risk that revenues may be deliberately over- or understated in order for management to achieve planned results. This could for example occur by manipulating inputs in the Group's accounting system.

Based on this rationale, we consider revenue recognition as a key audit matter.

Key Audit Matter Our response

We obtained an understanding of the revenue recognition process from initiating sales orders to payment receipts. Based on this we critically assessed whether transactions are completely and accurately recorded in the consolidated financial statements.

We considered the existence (design and implementation) of the relevant key controls relating to revenue recognition within the Group.

We assessed the appropriateness of accounting policies for revenue recognition and, specifically, for the appropriate sales cut-off.

In addition, our procedures included, among others, the following:

• − On a sample basis, we reconciled sales transactions before and after the balance sheet date with delivery bills and customer contracts. Based on this, we verified the transfer of control to the buyer and thus the recognition in the correct reporting period in accordance with the agreed terms.
• − On a sample basis, we reconciled the accounts receivable balance as of the balance sheet date to accounts receivable confirmations or, alternatively, to delivery documents, invoices and/or payments received.
• − On a sample basis, we assessed the appropriateness of credit notes issued as well as payments received after year end.
• − In addition, we performed analytical procedures on the level of various entities. These included analyses of margin developments.

In addition to the procedures described above, we further addressed the risk of management override of controls by analysing manual journal entries related to revenue accounts.

For further information on Revenue Recognition refer to the following:

• Summary of Significant Accounting Policies on page 131
• Segment Information on page 137
• Details to net revenues on page 157

Other Information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the stand-alone financial statements of the company, the compensation report and our auditor's reports thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' Responsibilities for the Consolidated Financial Statements

The Board of Directors is responsible for the preparation of the consolidated financial statements, which give a true and fair view in accordance with IFRS Accounting Standards and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Swiss law, ISA and SA-CH, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. 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 Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report, unless law or regulation

precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of the consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

KPMG AG

Toni Wattenhofer Licensed Audit Expert Auditor in Charge

5 Walterlife

Zug, 26 February 2025

Kevin Aregger Licensed Audit Expert

ANNUAL FINANCIAL STATEMENTS OF SCHWEITER TECHNOLOGIES AG

Balance sheet	170
Income statement	171
Notes to balance sheet and income statement	172
Proposal of the Board of Directors concerning the appropriation of the available earnings	175
Report of the statutory auditor	176

BALANCE SHEET

ASSETS (IN CHF M)	31 December 2024	31 December 2023
Cash and cash equivalents	5.5	2.1
Other current receivables	0.8	0.8
Current assets	6.3	2.9
Investments	130.7	130.7 1
Financial assets (loans to Group companies)	372.4	379.4
Non-current assets	503.1	510.1
Total assets	509.4	513.0
LIABILITIES (IN CHF M)
Current bank loans	55.0	65.0
Other current payables	1.0	0.8
Accrued expenses and deferred income	1.6	1.5
Current liabilities	57.6	67.3
Provisions	0.4	1.4
Non-current liabilities	0.4	1.4
Share capital	1.4	1.4 2
Statutory reserves:
– Other capital reserves	3.2	3.2
Free retained earnings	418.2	395.3
Net income of the year	28.6	44.4
Shareholders' equity	451.4	444.3
Total liabilities and shareholders' equity	509.4	513.0

INCOME STATEMENT

(in CHF m)	2024	2023
Investment income	22.0	40.0
Other financial income	9.4	6.5	4
Service income	1.5	1.4
Other income	1.5	1.3
Total operating income	34.4	49.2
Financial expenses	–1.3	–1.3
Administrative expenses	–0.8	–0.7
Personnel expenses	–2.9	–2.4
Expenses on premises	–0.1	–0.1
Total operating expenses	–5.1	–4.5
Income before taxes	29.3	44.7
Income taxes	–0.7	–0.3
Net income	28.6	44.4

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NOTES TO THE BALANCE SHEET AND INCOME STATEMENT

GENERAL INFORMATION

Schweiter Technologies AG is a joint-stock company under Swiss law and is domiciled in Steinhausen.

On an annual average, Schweiter Technologies AG had less than 10 full-time-equivalent employees in both the 2024 financial year and the previous year.

Schweiter Technologies AG prepares consolidated financial statements in accordance with IFRS. These financial statements and their notes therefore do not contain either additional information or cash flow statements or a MD&A.

ACCOUNTING AND VALUATION PRINCIPLES

The present annual financial statements of Schweiter Technologies AG have been prepared in accordance with Swiss accounting legislation. The key accounting and valuation principles not required by Swiss accounting legislation are described below.

Foreign currency translation

Foreign currency transactions are translated at the exchange rates prevailing at the date of the transactions in question. Gains and losses resulting from the settlement of such transactions are recognized in the income statement. Monetary assets and liabilities denominated in foreign currencies are translated into Swiss francs at year-end exchange rates. Realized gains and losses on foreign currency translation and unrealized losses on foreign currency translation are recognized in the income statement. Unrealized gains on foreign currency translation in connection with long-term monetary assets and liabilities are deferred in the balance sheet (imparity principle).

Cash and cash equivalents

Cash and cash equivalents include bank account balances. These are stated at their nominal value.

Investments

Investments are initially recorded at cost at the time of acquisition. Investments in Group companies are reviewed annually and adjusted to the recoverable amount.

Financial assets

Financial assets include long-term loans to Group companies.

Provisions

Provisions are recognized when the company has a legal or constructive obligation arising from past events, an outflow of resources embodying economic benefits to settle the obligation is probable, and a reliable estimate can be made of the amount.

Share-based compensation

Where treasury shares are used for share-based compensation, the difference between the acquisition value and any possible payment in connection with the share allocation represents personnel expenses.

NOTES TO THE BALANCE SHEET AND INCOME STATEMENT

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

1. INVESTMENTS

		Share capital		Shareholding		Voting shares
Company	Domicile		(in 1000)	2024	2023	2024	2023
3A Composites Holding AG	Steinhausen, CH	CHF	10 000	100%	100%	100%	100%
3A Composites Holding Germany GmbH	Singen, D	EUR	25	10%	10%	10%	10%

2. SHARE CAPITAL

	2024	2023
Number of registered shares issued with a par value of CHF 1	1 431 808	1 431 808
Share capital as of 31 December (in CHF)	1 431 808	1 431 808

The registered shares are listed at SIX Swiss Exchange AG, Zurich. Security no.: 124866700; ISIN: CH1248667003; ticker: SWTQ.

As of 31 December, the following shareholders held more than 3% of voting rights:

Percentage of shares held (according to most recent disclosure notice)

	2024	2023
KWE Beteiligungen AG, Wollerau1	25.49%	25.49%
Beat Siegrist Beteiligungen AG, Zug	5.81%	5.81%
UBS Fund Management (Switzerland) AG, Basel2	4.99%	n/a
Matter Group AG, Meilen	3.00%	–
1832 Asset Management L.P., Toronto, Canada	< 3%	12.46%
Credit Suisse Funds AG, Zurich2	n/a	3.01%

¹ KWE Beteiligungen AG is held by a group of shareholders consisting of Brigitte Frey, Vanessa Frey, and MARLA Foundation.

3. TREASURY SHARES

(Number of registered shares)	2024	2023
Balance as of 1 January	0	0
Purchases	1 447	68
Allocation to members of the Board of Directors and Management	–1 363	– 68
Balance as of 31 December	84	0

In 2024, 1 447 registered shares were purchased at an average price of CHF 478.44. 1 363 registered shares were allocated to members of the Board of Directors and Management.

The acquisition costs of the treasury shares held as of 31 December 2024 amounted to kCHF 34 (previous year: kCHF 0).

4. OTHER FINANCIAL INCOME

(in CHF m)	2024	2023
Interest income from Group companies	9.4	6.5
Foreign exchange gains	0.0	0.0
Total	9.4	6.5

² In 2024, absorption merger of Credit Suisse Funds AG and UBS Fund Management (Switzerland) AG

5. SHARE OWNERSHIP BY THE BOARD OF DIRECTORS AND MANAGEMENT

As of 31 December 2024, a total of 451 627 shares were held by members of the Board of Directors or members of Management (31 December 2023: 449 614):

Name	First name	Function	Number of shares 2024	Number of shares 2023
Baumgartner	Heinz O.	Chairman of the Board of Directors	1 055	836
Bossard	Daniel	Member of the Board of Directors	131	–
Frey1	Vanessa	Member of the Board of Directors	365 104	364 973
Sanche	Jacques	Member of the Board of Directors	173	31
Siegrist2, 3	Beat	Member of the Board of Directors	83 817	83 697
van der Haegen	Lars	Member of the Board of Directors	192	50
Widrig	Stephan	Member of the Board of Directors	131	–
Sonderegger	Roman	Group CEO	650	27
Scheidegger	Urs	Group CFO	374	–

Shares granted as part of the compensation of the Board of Directors or as short-term variable incentive of the Management are subject to a vesting period of three years.

Schweiter Technologies is not aware of any shares held by persons closely associated with members of the Board of Directors or Management.

6. CONTINGENT LIABILITIES

In connection with credit facilities extended to subsidiaries, the holding company has undertaken a guarantee in an amount up to a total of CHF 10.0 million (previous year: CHF 12.0 million). As of 31 December 2024, a credit line of CHF 0.3 million (previous year: CHF 0.4 million) had been drawn on by subsidiaries for loans, deposits, and guarantees.

7. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

No events occurred between the balance sheet date and the approval of these annual financial statements by the Board of Directors on 26 February 2025 which could have a material impact on the 2024 financial statements.

¹ Vanessa Frey is a member of a shareholder group and hold shares via KWE Beteiligungen AG. 2 Beat Siegrist is a member of a shareholder group and hold shares via Beat Siegrist Beteiligungen AG. 3 Beat Siegrist was Chairman of the Board of Directors until the Annual General Meeting 2023.

PROPOSAL OF THE BOARD OF DIRECTORS CONCERNING THE APPROPRIATION OF THE AVAILABLE EARNINGS

(in CHF m)	2024	2023
Unappropriated retained earnings (balance sheet profit) at the beginning of the financial year	439.7	423.9
Net income	28.6	44.4
Dividend paid	–21.5	–28.6
Available unappropriated retained earnings (balance sheet profit)	446.8	439.7
THE BOARD OF DIRECTORS PROPOSES TO THE GENERAL MEETING ON 9 APRIL 2025 THE FOLLOWING APPROPRIATION OF AVAILABLE EARNINGS:
Payment of a dividend of CHF 15.00 per registered share	21.51
Earnings carried forward	425.3
Total	446.8

¹ The dividend is based on the issued share capital as of 31 December 2024. No dividend is paid for treasury shares held by Schweiter Technologies AG.

If the Annual General Meeting approves the proposal, the payout of a gross dividend of CHF 15.00 (CHF 9.75 after deduction of withholding tax) per registered share will be made as of 15 April 2025.

StatutoryAuditor's Report

To the General Meeting of Schweiter Technologies AG, Steinhausen

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Schweiter Technologies AG (the Company), which comprise the balance sheet as at 31 December 2024, and the income statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements (pages 170 to 175) comply with Swiss law and the Company's articles of incorporation.

Basis for Opinion

We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of the Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. We have determined that there are no key audit matters to communicate in our report.

Other Information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the stand-alone financial statements of the Company, the compensation report and our auditor's reports thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Board of Directors' Responsibilities for the Financial Statements

The Board of Directors is responsible for the preparation of the financial statements in accordance with the provisions of Swiss law and the Company's articles of incorporation, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. 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 Company to cease to continue as a going concern.

We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to the Board of Directors or its relevant committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report, unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal control system exists, which has been designed for the preparation of the financial statements according to the instructions of the Board of Directors.

Based on our audit in accordance with Art. 728a para. 1 item 2 CO, we confirm that the proposal of the Board of Directors complies with Swiss law and the Company's articles of incorporation. We recommend that the financial statements submitted to you be approved.

KPMG AG

Toni Wattenhofer Licensed Audit Expert Auditor in Charge

Les Untalles

Zug, 26 February 2025

Kevin Aregger Licensed Audit Expert

KPMG AG, Landis + Gyr-Strasse 1, CH-6302 Zug

© 2025 KPMG AG, a Swiss corporation, is a group company of KPMG Holding LLP, which is a member of the KPMG global organization of independent firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

INFORMATION FOR INVESTORS

¹ 2024: proposal of the Board of Directors

FIVE-YEAR REVIEW

(in CHF m)	2024	2023	2022	2021	2020
INCOME STATEMENT
Net sales	1 011.3	1 069.6	1 197.7	1 226.9	1 160.2
EBITDA	72.2	89.7	85.5	151.5	175.7
EBITDA in % of net sales	7.1%	8.4%	7.1%	12.3%	15.1%
EBIT	23.1	50.3	42.5	111.3	137.6
EBIT in % of net sales	2.3%	4.7%	3.6%	9.1%	11.9%
Income before taxes	21.9	33.9	36.8	108.3	130.7
Income taxes	–9.0	–6.3	–7.7	–23.9	–27.2
Income taxes in % of income before taxes	41.2%	18.5%	21.0%	22.1%	20.8%
Net income	12.9	27.6	29.1	84.4	103.5
BALANCE SHEET
Current assets	478.9	467.9	503.8	557.9	548.2
Non-current assets	591.0	574.8	580.5	585.2	549.1
Total assets	1 069.9	1 042.7	1 084.3	1 143.1	1 097.3
Current liabilities	215.3	211.2	206.1	192.6	180.0
Non-current liabilities	134.5	125.1	125.4	173.9	179.3
Shareholders' equity	720.1	706.4	752.8	776.6	738.0
Equity ratio	67.3%	67.8%	69.4%	67.9%	67.3%
Invested capital	775.3	773.5	803.5	790.4	719.8
Free operating cash flow in % of
invested capital	7.4%	5.2%	-1.5%	4.4%	15.8%
STATEMENT OF CASH FLOWS Cash flow from operating activities	85.7	78.3	48.2	82.8	157.8
Cash flow from investing activities	–23.3	–42.4	–54.0	–53.5	–42.9
Free operating cash flow	57.2	40.2	–11.8	34.8	113.7
Investments in property, plant and
equipment and intangible assets	–21.1	–32.1	–50.9	–42.8	–37.4
EMPLOYEES AS OF 31 DECEMBER (FTE)
Total employees1	4 534	4 598	4 255	4 443	4 364

¹ Including employees in balsa wood plantations and sawmills in Ecuador and Papua New Guinea

DATES AND CONTACTS

PUBLICATIONS AND DATES

9 April 2025 Annual General Meeting at the Theater Casino Zug

25 July 2025 Publication of the Semi-Annual Report 2025

CONTACT

Dr. Urs Scheidegger, Group CFO

Schweiter Technologies AG Hinterbergstrasse 20 6312 Steinhausen, Switzerland T +41 41 757 77 00

investor@schweiter.com www.schweiter.com

GLOSSARY

EBIT Operating result

EBITDA Operating result plus depreciation of property, plant and equipment, impairment and amortization of intangible assets

Equity ratio Shareholders' equity divided by balance sheet total

Free operating cash flow Cash flow from operating activities plus purchases and proceeds from sale of property, plant and equipment plus purchases and proceeds from sale of biological assets plus repayments of leasing liabilities.

Invested capital Total assets excluding cash and cash equivalents minus total liabilities excluding current and non-current financial liabilities and employee benefits.

LEGAL NOTICE

Concept/Design/Production

Linkgroup AG, Zurich www.linkgroup.ch

Sustainability reporting

Sustainserv GmbH, Zurich

Cover

FESPA Global Print Expo 2022, Berlin, Germany.

Copyright

Photo: Lightweight modular flooring system for rail and road vehicles (page 5, above left)

Photo: Exhibition booth 3A Composites – Euroshop 2017 | © Philip Kistner (page 5, above right)

Photo: Paläon Schöniger Speere, Schöningen, Germany | © Jan Bitter (page 5, below left)

Photo: Leidi 660 | Leidi, Pula, Croatia (page 5, below right)

Photo: Charli Cohen x Pokemon Popup Store | © David Burton Photography (page 11, above)

Photo: Avis car rental | © Images: Christopher Hibbert | © Design & Implementation: Megamark (page 11, below)

Photo: KRC IT Park, Chennai, India | © 3A Composites India Private Limited (page 13, above)

Photo: Symphony Park Austin, Texas | © 3A Composites USA (page 13, below)

Photo: Balsa plantation, Ecuador (page 15, above left)

Photos: INNOVATION YACHTS prototype Open60AAL (page 15, middle and below)

Photo: Balsa forest, Ecuador (page 16, above)

Photo: © Shutterstock (page 16, below)

Photo: © Adobe Stock (page 17)

Photos: Product samples of DIBOND®, ALUCOBOND®, and AIREX®, Singen and Sins (page 21)

Print

Printlink AG, Zurich www.printlink.ch

02/2025

Printed in Switzerland on Nautilus® 100% recycled paper

Disclaimer

All statements in this Annual Report that do not refer to historical facts are forward-looking statements which are no guarantee of future performance. They are based on assumptions and involve risks and uncertainties as well as other factors beyond the control of the company.

Copyright by Schweiter Technologies AG, 6312 Steinhausen

Schweiter Technologies AG Hinterbergstrasse 20 6312 Steinhausen, Switzerland T +41 41 757 77 00

info@schweiter.com www.schweiter.com