Compensation Report

Introductory note from the Chairman of the Nomination and Compensation Committee

Dear shareholders,

On behalf of the Nomination and Compensation Committee of Zehnder Group, I am pleased to present the 2025 Compensation Report.

Despite strong business performance, we maintained a disciplined approach to compensation for the Group Executive Committee and the Board of Directors, implementing only selective adjustments for the Group Executive Committee and no adjustments for the Board of Directors in light of the continued political and economic volatility and uncertainty.

At the beginning of 2025, Valentina Videva Dufresne assumed her role as President North America as part of the Group Executive Committee. She has made a strong start in her new role and has already provided fresh momentum to our North American business, which continues to develop positively under her leadership.

A review of the ESG-based performance indicator on gender diversity of the LTI Plan for the Group Executive Committee took place to align the measurement of this key performance indicator to the newly implemented global job architecture.

In addition, we placed strong emphasis on short- and medium-term succession planning to support renewal and enhance gender diversity on the Board of Directors. This process is expected to lead to changes at Board level and will remain a key priority in the upcoming years.

Another responsibility of the Nomination and Compensation Committee is the annual performance management of the CEO and the other members of the Group Executive Committee. Performance targets and development measures were defined for each executive. In addition to annual compensation and performance reviews, the Nomination and Compensation Committee analysed shareholder feedback on compensation programmes and their disclosure in the compensation report, preparation of the compensation report, and the compensation proposals for the Annual General Meeting in order to align these elements with your interests.

Looking ahead, compensation benchmarks for both the Board of Directors and for the Group Executive Committee are planned as part of the ongoing review of our compensation programmes. These benchmarks will support the Nomination and Compensation Committee in making informed decisions regarding potential  compensation adjustments for the 2027 financial year.

We would like to thank you for your continued support over the past year and look forward to further strengthening our partnership through open dialogue, transparency, and trust.

Yours sincerely,

Riet Cadonau

Chairman of the Nomination and Compensation Committee