2.3 Defined Benefit Plans

The Group’s pension plans in Switzerland were previously provided by multiple pension providers. As of 1 January 2026, and following the express consent of the relevant employees, the Group harmonised its pension plans into a single pension fund under the collective foundation La Collective de Prévoyance – Copré (hereinafter referred to as Copré).

This harmonisation resulted in a plan amendment in the fourth quarter of 2025, due to the enhanced insured benefits mainly reflected in a higher conversion rate. The plan still qualifies as a defined benefit plan. In addition, the transition from the pension funds of TX Group AG to Copré will require a partial liquidation. The process was formally initiated with the termination notice.

Copré is a Swiss collective foundation (Sammelstiftung) governed by the provisions of the Swiss Federal Act on Occupational Old Age, Survivors’ and Invalidity Pension Provision (BVG). The uppermost body of Copré is the Assembly of Delegates, which represents the affiliated employers and insured members. The Assembly of Delegates appoints the Board of Trustees, approves the foundation’s statutes and regulations, and exercises overall supervisory authority. The Board of Trustees is responsible for the strategic management of the foundation, ensuring compliance with legal requirements, and overseeing the implementation of pension plans.

The BVG stipulates minimum amounts for the insured salary, retirement credits, and conversion rate for the mandatory BVG pension, and the required return. These statutory requirements and the specific characteristics of the plans meant that the Group is exposed to various risks, including actuarial, investment, interest rate, disability, and longevity risks.

Copré operates under a semi-autonomous structure, that covers biometric risks related to disability and death, while investment and longevity risks remain with the pension plan. As a result, the plan is exposed to fluctuations in investment returns and changes in actuarial assumptions, which may lead to varying contribution requirements or adjustments to the funding level over time.

Employer and employee contributions are generally defined as a percentage of the insured salary. The retirement pension is determined by multiplying the retirement savings capital available at the time of retirement by the conversion rates specified in the regulations. The employee has the option of receiving their retirement benefits as a lump sum. The disability and spouse’s pensions are defined as a percentage of the insured salary.

The Board of Trustees is responsible for restructuring measures in the event of underfunding to restore full funding of future pension benefits within a reasonable timeframe. These measures may include restructuring payments in the form of additional contributions, whereby the employer’s restructuring contributions must be at least equal to the sum of the employee’s restructuring contributions.

The responsibility for managing the foundation’s assets is vested in the Board of Trustees, which approves the investment regulations and their modifications, and sets the strategic allocation of the assets as well as the authorised fluctuation margins. The Board of Trustees ensures that the foundation’s pension-related objectives are met, in particular by adopting a management strategy that takes account of assets and liabilities, as well as the structure and foreseeable future changes in the number of persons insured. Copré maintains an Investment Committee, which supports the Board of Trustees by preparing investment-related decisions, monitoring asset managers, and ensuring adherence to the foundation’s investment policy and risk framework.

The actuarial calculation of the defined benefit obligations and the service cost was carried out by an independent actuary using the projected unit credit method. The fair value of the plan assets is derived from the information available at the date of preparation of the financial statements.

Movement in the net defined benefit liability in the years 2025 and 2024 was as follows:

Following the decision to harmonise and transfer all employees from the previous pension fund providers to Copré, the higher conversion rates offered by Copré increased the defined benefit obligation (DBO). The resulting difference in the DBO of CHF 6,046 thousand is recognised as past service cost in 2025.

The (gain)/loss on settlement results from a significant decrease in the number of insured persons at a group company.

Remeasurement loss/(gains) are derived from the transition from the pension funds of TX Group AG to Copré which will trigger a partial liquidation. In accordance with partial liquidation regulations and based on preliminary estimates, a remeasurement of plan assets is expected, resulting in an anticipated reduction of CHF 5,346 thousand.

The actuarial gain of CHF 1,830 thousand (previous year: loss of CHF 6,187 thousand) resulting from changes in financial assumptions was mainly due to the increase in the discount rate from 1.0% to 1.3% (previous year: decrease from 1.5% to 1.0%).

The amount recognised in the statement of financial position reflects the surplus or deficit of the defined benefit plans (net defined benefit liability or asset). However, any surplus recognised as an asset is restricted to the present value of economic benefit available.

The weighted average duration of the DBO as at 31 December 2025 is 15.9 years (previous year: 15.5 years).

In accordance with the investment regulations, the foundation manages its assets in a way that guarantees security and the spreading of risks. The assets only relate to the pension plan in Switzerland. The plan assets are invested in accordance with the foundation’s investment regulations. These assets are broadly diversified among cash and money market instruments, Swiss and foreign bonds, mortgage loans, alternative investments, private equity, infrastructure, equities, and Swiss and international real estate. There are no direct holdings of the Group’s shares.

For 2026, the Group expects to pay contributions to defined benefit plans in the amount of CHF 4,960 thousand.

The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial basis. The following underlying assumptions were applied in the actuarial calculations:

Changes in assumptions would impact the present value of the defined benefit obligations as follows:

The sensitivity analyses above were determined using a methodology that extrapolates the effect on the present value of the net defined benefit liability as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Significant Judgements and Estimates

Any change in actuarial assumptions will affect the carrying amount of the defined benefit obligations. The assumptions used to determine the net pension cost include the discount rate, future salary increases, and longevity risk. The discount rate is based on Swiss franc-denominated corporate bonds with a senior rating issued by domestic and foreign issuers and listed on the market. Future salary increases include expected increases in compensation and salaries, which depend on annual inflation estimates and years of service with the Group. Based on the current financial status of the pension funds, no future increases in pensions are anticipated. Life expectancy is derived from published statistics and mortality tables.