Letter from the Chair of the Compensation Committee

On behalf of the Board of Directors and the Compensation Committee, I am pleased to introduce the Compensation Report of SIG Group AG (“SIG” or the “Company”) for the year ended December 31, 2025. This report on compensation complements our business, financial, social responsibility and corporate governance reports, and describes SIG’s compensation system and its governance.

The principles guiding SIG’s compensation framework are to attract, engage and retain executives and employees, to drive sustainable performance and to encourage behaviors that are in line with SIG’s values as well as with the long-term interests of shareholders and other relevant stakeholders. The Compensation Committee regularly assesses, reviews and develops the compensation framework to ensure that it is aligned with these principles.

Key outcomes of the 2025 Annual General Meeting

I would like to thank you for the very positive vote on the 2024 Compensation Report. The approval rate of more than 90% is a clear acknowledgement of the high level of transparency of the report as well as of the strong and solid compensation structure. As part of its yearly duties, the Compensation Committee reviews and updates the compensation framework to foster sustainable performance, taking market trends and insights into account for future improvements.

Shareholder engagement and general design adjustments

A recurring topic from the shareholder outreach is the ESG component in the variable compensation which was further reassessed by the Compensation Committee in the course of 2025. A strong focus on ESG matters is integral to SIG’s business strategy and activities, and the compensation framework has for some years included a sustainability metric linked to our EcoVadis score. This score reflects SIG’s policies, actions and results based on a tailored risk profile for SIG’s sector. Performance is assessed and rated in the areas of environment including climate change and greenhouse gas emission reductions along the value chain, labor and human rights, ethics and sustainable procurement, and encompasses a comprehensive view on ESG matters with relevance for all SIG stakeholders. The Compensation Committee decided to keep the ESG KPI with the EcoVadis score as a part of our Short-Term Incentive Plan. This rating reflects the broad scope of overarching ESG activities of the Company and requires reaching high performance levels to enable our leading position.

Furthermore, the Compensation Committee regularly reviews and adjusts the general principles, elements and processes to ensure they remain appropriate for SIG. In this context the Compensation Committee has implemented the following changes, which became effective in 2025:

For the Short-Term Incentive Plan, as announced in the 2024 Compensation Report, the adjusted EBITDA target at global and regional level has been replaced by adjusted EBIT and adjusted EBIT margin. The change in the KPI reflects an increased focus on return on assets and represents a more meaningful indicator for assessing operating performance in relation to the investments made.
For the Long-Term Incentive Plan, the Compensation Committee discussed in detail the performance share unit framework and decided to keep the strong external focus (50% relative TSR) of this incentive scheme unchanged and to review the design principles for the 2026 grant.
The SPI® ICB Industry 2000 “Industrials” Total Return, used for the relative TSR calculation, was discontinued by the provider in December 2024. The Compensation Committee discussed alternative measurements and methodologies and concluded that an index-based measurement continued to be appropriate for the 2025 grant and that the SMI MID (SMIM) Total Return shall be used.

Specific considerations for 2025

In light of prevailing soft market conditions in 2025 and a more cautious market outlook, the Board of Directors initiated a strategic review, to reassess the Group’s medium-term positioning. The review reaffirmed SIG’s core positioning and long-term ambitions in sustainable aseptic system solutions and resulted in an updated outlook communicated in September 2025. Reflecting the revised growth assumptions and the outcome of the strategic review, the Group recognized impairment losses and other non-recurring charges in the second half of 2025. As a result, all financial KPIs for the full year were below target. In determining the 2025 Short-Term Incentive outcome, the Board of Directors carefully considered the overall SIG performance, including management’s response to the challenging environment and the implementation of strategic priorities. Any payout to members of the Group Executive Board will therefore be determined on a discretionary basis. For more details about the performance assessment and the payout, please refer to the respective section in this Compensation Report.

In addition, in the context of the ongoing transformation and recent leadership changes, the Compensation Committee initiated a one-time Leadership Continuity Plan. The purpose of this equity-based award is to reinforce stability within the core leadership team including the Group Executive Board during a period of strategic repositioning and to support the consistent execution of the Company’s long-term strategic priorities. The award is designed to align management with sustainable value creation and to mitigate retention risks in critical leadership roles during this transitional phase. For details about the Leadership Continuity Plan, please refer to the respective section in this Compensation Report.

Upcoming 2026 Annual General Meeting

At the upcoming Annual General Meeting, we will ask our shareholders to approve prospectively, in binding votes, the maximum aggregate amount of compensation for the Board of Directors until the next Annual General Meeting in 2027 and the maximum aggregate amount of compensation for the Group Executive Board for the year 2027. Furthermore, this Compensation Report will be submitted to shareholders for a non-binding, consultative vote.

We believe that this report provides a comprehensive overview of SIG’s compensation philosophy and approach. We are convinced that our remuneration system rewards performance in a balanced and sustainable manner that is well aligned with the interests of shareholders and other relevant stakeholders and equips SIG with effective tools in a competitive work environment.

On behalf of SIG, the Compensation Committee and the entire Board of Directors, I would like to thank you, our shareholders, for your contribution and for your continued trust in SIG.

Werner Bauer
Chair of the Compensation Committee
Neuhausen am Rheinfall, December 31, 2025

Information marked with the check mark has been audited by PricewaterhouseCoopers AG.