2 Personnel Expense

The personnel expense is as follows:

Personnel expense decreased compared to the previous year, primarily due to the significant fair value adjustment of the cash-settled Phantom Stock Plan (PSP) recognised in the first half of 2025 in connection with the Group’s Initial Public Offering (IPO). In addition, the remeasurement of the final PSP awards upon settlement in May 2026 resulted in a gain of CHF 1,293 thousand, recognised as a reduction in personnel expense.

Share-Based Compensation

The Group’s share-based compensation plans at the reporting date are set out below, together with an update on material changes during the reporting period:

Phantom Stock Plan

The final portion of vested phantom stock awards was settled in May 2026 in accordance with the plan terms. Prior to settlement, the related provision was remeasured using the observable market share price, resulting in a fair value gain of CHF 1,293 thousand which was recognised as a reduction in personnel expense. The remaining liability of CHF 851 thousand was subsequently settled in cash. The plan is now fully settled and no further expense will be recognised.

Profit Growth Share Plan 2.0

Following approval of the 2025 profit growth pool by the Board of Directors, 1,410,480 profit growth share units were exercised and converted into 71,405 shares granted to eligible employees. The shares were measured at a fair value of CHF 27.40 per share, based on the observable market price at the grant date. After withholding shares for social security obligations, 65,060 net shares were delivered to participants.

Fair Value Measurement and Shares

In addition, new profit growth share units were issued to eligible employees in respect of the 2026 financial year. The related service and performance period runs from 1 January to 31 December 2026, with the grant date expected in the first quarter of 2027 following approval of the profit growth pool by the Board of Directors. The related share-based compensation expense is recognised on a straight-line basis over the service period commencing on 1 January 2026.

IPO Long-Term Incentive Plan

There was no material change in the IPO Long-Term Incentive Plan (IPO LTI) during the reporting period, with the expectation of the vesting of awards according to the plan rules.

Long-Term Incentive Plan

The Long-Term Incentive Plan (LTIP) forms part of the Group’s recurring long-term incentive framework and was introduced following the IPO in 2025. The first awards were granted in April 2026 with vesting expected in March 2029. The LTIP is structured consistently in line with the IPO LTI.

Under the LTIP, eligible participants receive annual grants of performance share units (PSUs), each representing a conditional right to receive one share in the Company upon vesting. Vesting is subject to continued employment and the achievement of performance conditions based on 70% cumulative Adjusted EBIT before PPA and 30% relative total shareholder return (rTSR), measured over a three-year performance period (financial years 2026 to 2028). The LTIP is accounted for as an equity-settled share-based compensation plan. The grant-date fair value is determined using a Monte Carlo simulation and recognised as personnel expense on a straight-line basis over the vesting period.

Fair Value Measurement and Performance Share Units

Blocked Shares Plan

In April 2026, the annual grant of blocked shares was made to the Chairperson of the Board of Directors under the Blocked Shares Plan. The grant-date fair value was based on the average market share price over the 20 trading days preceding the grant date.

Fair Value Measurement and Shares