Notes to the financial statements of Rieter Holding Ltd.

The financial statements of Rieter Holding Ltd. have been prepared in accordance with the provisions of Swiss accounting law.

Significant accounting policies that are not specified by the Swiss Code of Obligations are listed below.

In principle, investments are measured individually. If management and internal performance assessment are combined for a group of investments, impairment testing for these investments may also be combined. Investments are recognized in the balance sheet at acquisition cost less necessary accumulated value adjustments.

Treasury shares are recognized at historical cost and presented as a negative component of equity. If treasury shares are sold or reissued subsequently, any resulting gains or losses are directly recognized against free reserves.

All monetary assets and liabilities in foreign currencies are translated at year-end exchange rates. Losses from the revaluation of non-current receivables and payables are recorded in the income statement, whereas the respective gains are not recognized. Income and expenses as well as all transactions in foreign currencies are translated using the exchange rate prevailing on the date of the transaction. The resulting foreign currency gains and losses are recognized in the income statement.

Derivative financial instruments are recognized only on the balance sheet if unrealized losses exist.

Rieter Holding Ltd. is presenting its consolidated financial statements in accordance with the IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). Therefore, Rieter Holding Ltd. has applied the exemption included in Art. 961d, para. 1 Swiss Code of Obligations and has not prepared additional disclosures on interest-bearing liabilities and audit fees as well as a separate cash flow statement.

Other income consists of the contractually agreed compensation payments from group companies.

Financial expenses consist mainly of interest payable on the fixed-rate bonds and liabilities payable to banks and group companies, as well as the foreign exchange result. In addition, the charges for the non-utilized Revolving Credit Facility (RCF; CHF 250 million, maturity on October 30, 2026) are included.

Due to general business risks, the value adjustments were increased by CHF -15.0 million (2023: CHF -20.0 million) by decreasing the investments in subsidiaries accordingly.

Cash and cash equivalents include bank accounts.

Receivables from group companies consist mainly of current account credit facilities granted to subsidiaries based on market terms and conditions in the context of central cash management.

Prepaid expenses and accrued income consist mainly of financing costs. Accrued expenses and deferred income include mainly accrued interest and taxes.

The financing requirements of the subsidiaries were covered with non-current loans, granted by Rieter Holding Ltd. based on market terms and conditions.

Below is a list of all investments. Rieter Management AG was merged into Rieter Ltd. as per January 1, 2024.

Rieter Holding Ltd. manages cash and cash equivalents of group companies in the central cash pool.

In 2024, Rieter Holding Ltd. continued to draw down short-term bank loans at various financial institutions with different terms to secure liquidity.

On November 25, 2021, Rieter Holding Ltd. issued a fixed-rate bond with a nominal value amounting to CHF 100.0 million. This bond has a term of six years with a maturity date on November 24, 2027, a fixed interest rate of 1.4 percent p.a. and is listed on the SIX Swiss Exchange. Additionally on November 27, 2024, a fixed-rate bond with a nominal value amounting to CHF 70.0 million was issued. This bond has a term of five years with a maturity date on November 27, 2029, a fixed interest rate of 3.5 percent p.a. and is also listed on the SIX Swiss Exchange.

Provisions were recognized for foreign exchange risks and guarantee commitments.

At December 31, 2024, the share capital of Rieter Holding Ltd. amounted to CHF 23 361 815. It is divided into 4 672 363 fully paid registered shares with a nominal value of CHF 5.00 each.

According to §3a of the Articles of Association, Rieter Holding Ltd. has implemented a capital band of between CHF 22 193 725 (lower limit) and CHF 25 697 995 (upper limit). Within the capital band, the Board of Directors is authorized to increase or reduce the share capital once or several times, and in any amount, until April 20, 2028, or until the capital band expires earlier, or to acquire or sell shares directly or indirectly. The capital increase or reduction may be effected by issuing up to 467 236 fully paid registered shares with a nominal value of CHF 5.00 each, or by cancelling up to 233 618 registered shares with a nominal value of CHF 5.00 each, or by increasing or decreasing the nominal value of existing registered shares within the limits of the capital band.

Treasury shares are held directly by Rieter Holding Ltd. Consequently, there is no need for a separate reserve for treasury shares.

At the balance sheet date, the acquisition cost of the directly held treasury shares totaled CHF 19.6 million (2023: CHF 23.2 million).

Rieter Holding Ltd. is a limited company (“Aktiengesellschaft”) with its registered office in Winterthur (Switzerland). The company did not employ any personnel throughout 2024 (unchanged to 2023).

Guarantees to third parties consist of sureties issued to financial institutions for loans granted.

As part of the compensation package, treasury shares were allocated to the Board of Directors and Management as follows:

There were no significant events after the balance sheet date.