2. Foreword by the Chair of the Nomination and Compensation Committee

Dear shareholders,

On behalf of the Nomination and Compensation Committee (NCC), I am pleased to present the 2025 Remuneration Report.

Another demanding business year is behind us. Despite challenging conditions in the building construction industry in Europe, we were able to significantly increase sales and sales volumes. In this regard, the development of newly introduced products, broad-based growth in the markets and high market acceptance were all very pleasing. Operating margins were only slightly below the previous year’s level. Without the one-off costs resulting from a plant closure, operating margins would have increased, thanks in part to efficiency improvements. At the same time, investments continued in the innovation pipeline and all important, larger investment projects were carried out as planned. This enabled us to further expand and strengthen our market position as leading supplier of sanitary products.

Throughout the year, the NCC carried out its regular activities on remuneration matters, such as the annual review of the remuneration programmes, the setting of performance targets for the GEB at the beginning of the year and their assessment at the end of the year, the determination of the remuneration of the members of the BoD and the GEB, the preparation of the Remuneration Report and the Say on Pay votes at the AGM.

The NCC also conducted a benchmarking analysis to assess the competitiveness of the remuneration of the BoD and the GEB. The BoD benchmark showed that the remuneration structure and levels are broadly in line with market practice. Therefore, no adjustments to the BoD remuneration will be made. The GEB benchmark indicated that for most positions the total remuneration is below market level. While the Long Term Participation (LTP) target was increased from 125% to 135% of the annual base salary for the CEO and from 70% to 80% for other GEB members as of business year 2025 to emphasise the long term focus of the GEB members’ remuneration, no further adjustments will be made. Further, the NCC decided to discontinue the individual goals in our Short-Term Participation (STP) for GEB members, making the STP a comprehensive participation programme in line with Geberit’s culture of fostering performance while encouraging strong collaboration within teams.

At our 2025 AGM, a prospective binding vote was held on the maximum total remuneration for the BoD and the GEB, and our shareholders had the opportunity to express their views on our remuneration policy through a consultative vote on the Remuneration Report. Our shareholders approved the proposed level of remuneration for the BoD with 98% and for the GEB with 91%. After the AGM 2024, Geberit engaged in a dialogue with institutional shareholders and proxy advisors to understand and address their concerns around remuneration. Based on the feedback received, the BoD decided to increase transparency in the Remuneration Report and refine the remuneration system for the GEB. At the AGM 2025, this resulted in an approval rate of the Remuneration Report of 95%.

At the 2026 AGM, you will have the opportunity to express your opinion on this Remuneration Report in a consultative vote. You will also be asked to approve the total remuneration of the BoD for the period until the next AGM and the maximum total remuneration of the GEB for the 2027 financial year.

Looking ahead, we will continue to foster an open and regular dialogue with our shareholders and their representatives as we develop our remuneration systems. The NCC values your ongoing input and feedback on our remuneration programmes.

We look forward to the AGM in April 2026.

Yours sincerely,

Eunice Zehnder-Lai
Chair of the NCC