Letter from the Chairman

Dear Shareholders,

Having joined SIG in April 2025, I was impressed by the strength of SIG’s core business, its technology leadership in aseptic system solutions and the deep commitment of its people. At the same time, it became clear to me and the Board that a thorough review of the Group’s strategic priorities was required to ensure sustainable performance in a more challenging market environment.

In 2025, SIG therefore took decisive steps to sharpen its strategic focus. Following an intensive strategy review process, the Board defined a clear roadmap to improve business performance, focusing on portfolio optimization, operational improvement and a more rigorous approach to capital discipline. We are convinced that these priorities, together with SIG’s unique business model, provide a solid foundation for long-term value creation.

Leadership changes

At the Annual General Meeting in April 2025, I was elected as Chair of the Board of Directors of SIG Group, succeeding Andreas Umbach. Urs Riedener and Niren Chaudhary were elected as new members of the Board, while Andreas Umbach, Matthias Währen, Wah-Hui Chu, and Laurens Last stepped down.

In August 2025, the Board and Samuel Sigrist mutually agreed that Mr. Sigrist would step down from his position as CEO of the Company. Anne Erkens assumed the CEO role ad interim in addition to her responsibilities as CFO, ensuring continuity during this transition period. In November 2025, SIG announced the appointment of Mikko Keto as its new CEO, who assumed his role on March 1, 2026. The Board is convinced that Mr. Keto’s experience and leadership will be instrumental in guiding SIG through its next phase of development.

Strategic review

The Board conducted a comprehensive review of the Group’s strategy considering the current market environment and SIG’s long-term ambitions. This review resulted in three clear priorities going forward:

Portfolio optimization towards highly differentiated aseptic system solutions

The review confirmed SIG’s competitive advantage and unique capabilities, particularly in the aseptic carton business. A clear pathway has been defined to migrate non-aseptic spouted pouch applications into newly developed aseptic systems, the Board has introduced a more differentiated approach to capital allocation, while for the chilled carton business, various options involving strategic partnerships are being explored.

Driving performance improvement through self-help initiatives

The Group has launched a series of self-help measures to improve financial performance in a challenging market environment. These initiatives include targeted reductions in SG&A and R&D costs, optimization of procurement structures, and improvements in manufacturing efficiency, including the closure of two production sites.

Disciplined capital allocation and enhanced performance focus

The Board has established a clear capital allocation framework with a stronger emphasis on operational performance and value creation. As part of this approach, EBIT has been introduced as a key performance indicator, replacing EBITDA. While investments in capital expenditure will continue, they will do so at a reduced rate and be more selective level. At the same time, the Board is firmly committed to strengthening the balance sheet and reducing debt levels targeting a net leverage of 2.5x by the end of 2027. In this context, the Board has decided to propose to shareholders the suspension of the dividend for the 2025 financial year. This decision reflects a deliberate and temporary measure to support balance sheet strength and financial flexibility. Beyond this period, the Board remains committed to a shareholder-friendly capital return policy.

The strategic review resulted in non-recurring charges of €350.7 million pre-tax, primarily related to impairments. Further details on these charges are provided in the financial review and consolidated financial statements sections of this Annual Report.

Based on the outcome of the strategic review, the Group updated its mid-term financial guidance. This includes an organic revenue growth of 3–5% per year, an adjusted EBIT margin above 16.5%, a net capex ratio (including lease payments) of 6–8% of revenue, a net leverage ratio of around 2x and a dividend payout ratio of 30–50% of adjusted net income.

Financial performance

In 2025, Group revenue increased by 0.4% on a constant currency basis and by 0.1% on a constant currency and constant resin basis. The adjusted EBITDA margin amounted to 22.1%, or 24.2% excluding non-recurring charges (2024: 24.6%). The adjusted EBIT margin reached 13.6%, or 15.7% excluding non-recurring charges (2024: 16.5%).

Free cash flow amounted to €191 million, reflecting lower EBITDA and higher rebates paid to customers. In a subdued market environment, characterised by lower consumer spending, the aseptic carton business grew by 1.2%. This performance underlines the resilience of SIG’s core business, based on the value we deliver to our customers through unmatched packaging flexibility, competitive total cost of ownership and our best-in-class sustainability offering. During 2025, we placed 68 new aseptic carton filling machines, increasing the net number of aseptic carton filling machines in the field by 1% to 1,448.

Revenue in the Bag-in-Box and Spouted Pouch businesses declined by 3.4% on a constant currency and constant resin basis. The Chilled Carton business declined by 5.3%, with encouraging mid-single-digit growth recorded in the fourth quarter.

Business highlights

Following the successful start of operations in early 2023, SIG began expanding its new plant in Mexico, reinforcing its long-term commitment to markets in Canada, the United States, Mexico, and Central America. The expansion, scheduled to begin production in the second half of 2026, is expected to boost the plant’s output by 50% and support growing demand for small-volume packaging solutions, ranging from 80ml to 350ml. The Company’s filling technology offers unmatched flexibility for customers – enabling rapid changeovers between formats, volumes, and designs – allowing them to stay agile in a dynamic and competitive marketplace.

In summer 2025, SIG launched its first SIG Terra Alu-free + Full barrier aseptic carton solutions in Germany.

By replacing the aluminum layer with an ultra-thin polymer coating, this innovation reduces the number of raw materials from three to two and can lower the carbon footprint of multi-serve aseptic cartons by up to 61% when combined with forest-based polymers¹, without compromising full barrier function, shelf life or filling performance. The rollout of this solution is progressing and includes markets beyond Europe, such as China and South Korea.

1 European average, based on an independent ISO-compliant life-cycle assessment for Europe (EU 27+3)

We have also successfully introduced our new product line of aseptic spouted pouch solutions, addressing attractive growth segments such as fruit purée and baby food.

In the first half of 2025, SIG completed the refinancing of the 2020 Eurobond through the issuance of a new €625 million Eurobond with a coupon of 3.75% and a maturity in March 2030, listed on the SIX Swiss Exchange. SIG continues to be rated investment grade by both S&P (BBB-) and Moody’s (Baa3).

We were also delighted to having received EcoVadis Platinum status for the seventh consecutive year with a record score of 99 out of 100 points.

Closing remarks

On behalf of the Board, I would like to thank you: our shareholders, for your continued trust and support; our customers, for your partnership and confidence in SIG’s solutions; and our employees, for your dedication and commitment, particularly in a challenging environment. I would also like to thank Anne Erkens for her leadership and commitment in her dual role as interim CEO and CFO during a demanding transition period.

With a clear strategic direction, a strengthened focus on performance and capital discipline, and a strong foundation in aseptic system solutions, SIG is well positioned to create sustainable long-term value and to continue innovating while contributing to a more sustainable future for liquid food and beverage packaging.