1 Foreword by the Chairwoman of the Remuneration Committee

Dear shareholders,

I am pleased to present the Remuneration Report 2025 on behalf of the Board of Directors and the Remuneration Committee. The report contains all the relevant information on the remuneration policy, the remuneration system and the disclosure of remuneration for the Board of Directors and the Executive Committee in the 2025 financial year.

The Remuneration Committee also fulfilled its responsibilities in the area of remuneration in 2025. This included the annual review of the remuneration programs, the setting of performance targets for the Group Executive Committee at the beginning of the year as well as their assessment at the end of the year. In addition, the competency profile of the Board of Directors and the composition of the committees were revised. The Committee also proposed the remuneration of the members of the Board of Directors and the Group Executive Committee, prepared the Remuneration Report and prepared the votes for the Annual General Meeting. In the reporting year, the focus was also on reviewing the bonus system for the 2026 financial year in view of the planned acquisition of the Barmag Division from OC Oerlikon. The compatibility of the salary structures with the remuneration system was reviewed and approved.

The 2025 financial year was very challenging for the Rieter Group, with the weak order situation increasing the pressure to act. The Group responded to the situation with consistent cost reductions and structural optimizations, thus laying the foundations for future profitable growth. Rieter pursues a pay-for-performance approach. The challenging business development in the reporting year had a corresponding impact on the variable component of the remuneration of the Group Executive Committee members. No variable remuneration in the form of short-term incentives or sales bonuses was paid in the 2025 financial year. In addition, senior executives and management worldwide waived part of their remuneration in the form of salary reductions or unpaid vacation days. The members of the Board of Directors waived part of their basic remuneration. This was a clear sign of solidarity with the employees on short-time work from executive management, management and the Board of Directors.

Since the ordinary Annual General Meeting 2024, Rieter aims to increase the proportion of women on the Board of Directors to 30 percent. Currently, two women are represented on the seven-member Board of Directors, which corresponds to a quota of 28 percent. As Chairwomen, they lead the Compensation Committee, the Remuneration Committee and the Audit Committee. Since January 1, 2025, the proportion of women in the Group Executive Committee has also increased positively with the appointment of the Chief Human Resources Officer.

In the 2025 financial year, the proportion of women in management and leadership positions was raised to 20.1 percent. Rieter is committed to further increasing the proportion of women in the company. Dedicated programs are being implemented to this end. In the reporting year, the Personnel Committee also dealt with the long-term planning of positions in and below the Group Executive Committee. Measures for diversity and inclusion as well as for the development of skills, leadership and talent were intensified. Rieter conducts an annual Net Promoter Score survey among employees. In 2025, the participation rate increased by 25 percentage points to 73 percent, with almost 80 percent of all units achieving an improvement in the score.

Equal treatment and diversity among employees are of central importance to Rieter. In the 2024 and 2025 financial years, all main locations were therefore reviewed with regard to pay equity. The analysis did not reveal any significant deviations, and action plans were drawn up for a few areas.

Rieter’s compensation system is designed to ensure that performance is rewarded in a balanced and appropriate manner in the future, while also taking into account the interests of shareholders. We will therefore continue to ensure that our compensation programs are fit for purpose in a constantly changing corporate environment.

Kind regards,

Sarah Kreienbühl

Member of the Board of Directors and Chairwoman of the Remuneration Committee