Calculation basis

Reporting principles

Galenica’s sustainability reporting is carried out annually and covers the period from 1 January to 31 December 2025. This report was approved by the Board of Directors on 5 March 2026 and published on 10 March 2026. It follows the Global Reporting Initiatives (GRI) 2021 Standards, supplemented by the requirements of the revised Swiss Code of Obligations (Art. 964a et seq.) and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The GRI content index, the TCFD index and the Transparency on non-financial matters index provide an overview of the relevant disclosures.

The list of material topics based on the principle of dual materiality was drawn up in 2023 and revised in the current financial year and is disclosed in the Our sustainability approach section of the annual report.

Organisational system boundaries

The sustainability report of Galenica Ltd. covers all subsidiaries that are fully consolidated in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Associated companies and joint ventures are excluded from this in principle; any deviations from this principle are disclosed under the corresponding key figure.

Further details on the Group companies can be found in note 31 "Group Companies" to the consolidated financial statements. Exceptions to the scope of this reporting are explicitly marked.

Acquisitions and divestments

Newly acquired or sold companies in the current financial year are not included in the key figures unless this is explicitly stated in the notes to the report. Accordingly, no data is included for the Labor Team Group, which was acquired on 9 September 2025.

Data collection process

Each key figure is based on defined internal guidelines, processes, controls and responsibilities. The data originates either from the internal systems of the Galenica Group or, if necessary, from the systems of third parties. Unavailable data is estimated in line with recognised processes and industry standards.

Assumptions and estimates

For each estimate used, the underlying method is disclosed in the following sections.

Data on our environmental impact

As Galenica is constantly optimising the system of environmental indicators and gradually expanding the system boundaries (due to primarily inorganic corporate growth), the data are only comparable to a limited extent from year to year.

Greenhouse gas emissions (CO₂, CH₄, N₂O, HFCs and PFCs, excluding NF₃ and SF₆, for which there is no consumption) are calculated in accordance with the Greenhouse Gas (GHG) Protocol. The consolidation approach of financial control is used to define the organisational boundaries, which means that all companies and sites over which Galenica exercises financial control are taken into account.

Greenhouse gas emissions from joint ventures and associated companies are recognised under Scope 3, Category 15 (Investments), as there is no financial control.

Energy and emissions

The detailed underlying data for individual energy consumption is described in the following sections on the emissions survey.

Consolidation and recognition of energy consumption

Energy consumption within the organisation is divided into three main categories:

Electricity consumption includes purchased electricity (except for electric vehicles and heat pumps). In addition, any self-generated electricity is included in this category (unless used for the operation of heat pumps). This category also includes emergency power from heating oil and diesel generators and a heating oil-powered sprinkler pump.

Heat consumption includes the use of natural gas, heating oil (excl. sprinkler pump), district heating and electricity for heat pumps for space heating.

Vehicles’ energy consumption includes energy consumption in connection with the use of the company’s own vehicle fleet. This involves diesel, petrol, compressed natural gas (CNG) and electricity.

The proportion of renewable and non-renewable energy sources consumed is also shown. The following energy sources are assumed to be renewable: self-produced and self-used solar energy; purchased hydropower energy or grid electricity covered by guarantees of origin; district heating; biogenic components in diesel (assumption: 7%) and compressed natural gas (CNG; assumption: 20%).

Data collection & conversion factors for emissions under Scope 1+2

The emissions from activities and energy consumption associated with the company’s own operations are calculated and recognised methodically using the definitions in accordance with the Greenhouse Gas Protocol (GHG Protocol; World Resources Initiative (WRI) and World Business Council for Sustainable Development (WBCSD)).

Scope 1 – Fuels and refrigerants

Scope and underlying data
Galenica Group companies collect individual data on their consumption of heating oil, (compressed) natural gas, wood pellets, diesel, petrol and refrigerant leaks. The energy sources are used for space heating and transport, as well as for emergency power generation. Heat consumption for rented properties is not recognised under Scope 1 as Galenica has no financial control over it.

Conversion and emission factors used
The greenhouse gas emissions resulting from energy consumption are calculated using recognised conversion and emission factors (heating oil, natural gas, diesel, petrol: Swiss greenhouse gas inventory from the Federal Office for the Environment; biogas, biodiesel, wood pellets: UK Department for Environment, Food & Rural Affairs). The global warming potentials of the IPCC are used to calculate the greenhouse gas effect of refrigerant losses.

Calculation methodology and key assumptions
The resulting greenhouse gas emissions are calculated separately for each data point of energy consumption. Biogenic components in diesel used (assumption: 7% biodiesel) and CNG (assumption: 20% compressed biomethane) and wood pellets are not recognised in the scope.

Restatements
In the reporting year, heating fuels consumed in rented properties (heating oil, natural gas) were no longer accounted for within the organisational boundaries. As a result, the related emissions are no longer included in Scope 1, but now in Scope 3, Category 8. The adjustment was also made retroactively for the base year and the 2024 financial year. In addition, minor value adjustments were made for 2024 in line with delayed data submissions.

Scope 2 – Purchased electricity and district heating

Scope and underlying data
The electricity consumption data for Group companies is collected centrally by a service provider and reported to Galenica. Group companies also collect individual data on the consumption of heat pumps, consumption from district heating and the mileage of electric vehicles in kilometres. Heat consumption for rented properties is not recognised under Scope 2 as Galenica has no financial control over it.

Conversion and emission factors used
The greenhouse gas emissions resulting from energy consumption are calculated using recognised emission factors (district heating: UK Department for Environment, Food & Rural Affairs; grid power Switzerland: International Energy Agency (IEA; international electricity trading was taken into account), hydropower Switzerland: [Alig, M., Tschümperlin, L., & Frischknecht, R. (2017). Greenhouse gas emissions of the electricity and district heating mixes in Switzerland according to the GHG Protocol. Commissioned by Sustainserv GmbH, UBS Fund Management, Swiss Post and pom+ Consulting. treeze Ltd., Uster.] p. 7, Table 3.1; Domestic production > Renewables > Hydropower (consumer electricity mix), Scope 2 (value normalised to 100%).

Calculation methodology and key assumptions
Galenica purchased 17,500 MWh of guarantees of origin for hydropower from Europe for the 2025 financial year. These are purchased from Swenex – Swiss Energy Exchange Ltd. as unbundled energy attribution certificates and certified by Pronovo Ltd. These certificates are split between Group companies in such a way that they contribute an equal percentage for each reported form of electricity consumption – which means that electricity consumption is already split accordingly to reflect hydropower and grid electricity purchases. This does not apply to electric vehicles, which, due to a lack of detailed information, are assumed to be charged via external charging infrastructure using grid electricity available in Switzerland (based on average availability). The energy provided is calculated on the basis of aggregate mileage with a vehicle efficiency factor of 0.42694 kWh/km.

The resulting greenhouse gas emissions are calculated separately for each data point associated with energy consumption. For calculations involving the “location-based” approach, the emission factor for average grid electricity in Switzerland is applied to all electricity consumption. For the “market-based” approach, a lower emission factor is used for the certified hydropower share specific to the type of production in Switzerland.

Restatements
In the reporting year, district heating purchases in rented properties were no longer accounted for within the organisational boundaries. As a result, the related emissions are no longer included in Scope 2, but now in Scope 3, Category 8. The adjustment was also made retroactively for the base year and the 2024 financial year. In addition, minor value adjustments were made for 2024 in line with delayed data submissions. In particular, the estimated value used for 2024 for electricity consumption of pharmacies was replaced by effective consumption data.

Data collection & conversion factors for emissions under Scope 3

The emissions from activities and energy consumption in Galenica’s value chain are calculated and recognised methodically using the definitions in accordance with the Greenhouse Gas Protocol (GHG Protocol Corporate Value Chain Standard; World Resources Initiative (WRI) and World Business Council for Sustainable Development (WBCSD)).

Unless explicitly stated, the data used to calculate Scope 3 emissions is not based on information provided by suppliers or other partners.

Although some Scope 3 categories were calculated by Galenica, they turned out to be insignificant overall. They are therefore excluded from reporting. This applies to emission sources for the disposal of own waste (Category 5), business trips (Category 6), downstream transport and distribution (Category 9), product usage (Category 11) as well as the disposal of products at the end of their life cycle (Category 12).

Due to the numerous assumptions and estimates, Scope 3 values are rounded (for values ≥ 10,000 to the nearest 1,000 tCO₂e, values between 1,000 and 10,000 to the nearest 100 tCO₂e).

Category 1 – Purchased goods and & services

Scope and underlying data
The financial expenses for goods and services purchased in the reporting year serve as the basis for calculating upstream emissions from the supply chain. These correspond to the financial reports of all companies directly referred to in the consolidated financial statements for the reporting year. The expenses are categorised according to the area of activity of the respective supplier or service provider and in line with the NACE classification (Version 2.0).

Emission factors
The emission factors used come from the EXIOBASE database (in tCO₂e/million euro, 2020) and are assigned to the NACE classes. Currency conversion is based on the ECB reference rates and the harmonised consumer prices provided by the Federal Statistical Office (FSO).

Calculation methodology and key assumptions
Financial expenses are categorised by the type of goods and services and multiplied by emission factors from the EXIOBASE database (expenditure-based calculation method). The factors (in tCO₂e/million euro) are converted to Swiss francs and adjusted for inflation since the EXIOBASE base year. The conversion rates come from the European Central Bank (ECB) and the inflation rates from the Federal Statistical Office (FSO).

Restatements
This key figure was reported for the first time in the reporting year. The comparative figures from the base year and the previous year are calculated using the same method.

Category 2 – Capital goods

Scope and underlying data
The financial expenses for investments in capital goods in the reporting year serve as the basis for calculating upstream emissions from the supply chain. These correspond to the financial reports of all companies directly referred to in the consolidated financial statements for the reporting year. The expenses are categorised according to the area of activity of the respective supplier or service provider and in line with the NACE classification (Version 2.0).

Emission factors
The emission factors used come from the EXIOBASE database (in tCO₂e/million euro, 2020) and are assigned to the NACE classes. Conversion is based on the ECB reference rates and the harmonised consumer prices provided by the FSO.

Calculation methodology and key assumptions
Financial expenses are categorised by the type of goods and services and multiplied by emission factors from the EXIOBASE database. The factors (in tCO₂e/million euro) are converted to Swiss francs and adjusted for inflation since the EXIOBASE base year. The conversion rates come from the European Central Bank (ECB) and the inflation rates from the Federal Statistical Office (FSO).

Restatements
This key figure was reported for the first time in the reporting year. The comparative figures from the base year and the previous year are calculated using the same method.

Category 3 – Fuel- and energy-related activities

Scope and underlying data
The so-called “well-to-tank” (WTT) emissions from the procurement of energy sources at Galenica are not included in Scope 1 and 2 and are therefore recognised under Scope 3 – Category 3. The underlying data corresponds to the aggregate energy consumption (see Scope 1-2).

Emission factors
Upstream greenhouse gas emissions from the purchase of energy sources are calculated using recognised emission factors (UK Department for Environment, Food & Rural Affairs). The market-based method was used to calculate upstream emissions for renewable electricity, according to which no WTT emissions are generated and emissions from grid losses are zero or negligible.

Calculation methodology and key assumptions
The emissions are calculated from the consumption data for the energy sources and multiplied by the corresponding “well-to-tank” emission factors. The underlying assumptions correspond to those used for energy consumption (Scope 1-2).

Restatements
This key figure was reported for the first time in the reporting year. The comparative figures from the base year and the previous year are calculated using the same method.

Category 4 – Upstream transport & distribution

Scope and underlying data
The Group companies Galexis, Alloga and Pharmapool collect individual data on the diesel consumption of their transport service providers. In addition, Galenica calculates raw data for goods procured by suppliers themselves. This information includes the mode of transport (truck, boat and air), weight and distance ex works from the supplier for the manufacturing companies Bichsel, Spagyros, Padma and Verfora as well as for the wholesalers Galexis, Pharmapool and Unione. Other Group companies do not procure any transport services from third parties themselves and do not have any relevant incoming goods that are delivered directly by third parties.

Emission factors
The greenhouse gas emissions resulting from the energy consumption of transport service providers are calculated using recognised conversion and emission factors (direct emissions: Swiss greenhouse gas inventory from the Federal Office for the Environment; well-to-tank (WTT) emissions: UK Department for Environment, Food & Rural Affairs). Factors from the Mobitool database (Version 3.0; truck: goods transport, diesel, fleet average; ship: goods transport, container ship; aircraft: goods transport, aircraft, average) are used to estimate transport emissions by suppliers. These also take into account upstream emissions for transport.

Calculation methodology and key assumptions
The resulting greenhouse gas emissions for each Group company are calculated for the diesel consumption of the transport service providers (2025: in total 92.8% of emissions in Category 4). A distinction is made between emissions from Health Supply and other service providers. Biogenic components in diesel used (assumption: 7% bio diesel) are not recognised in the scope. The transport performance of suppliers is calculated in tonne-kilometres (weight × distance) and the ratio of the different modes of transport is estimated. It is assumed that the goods will be transported by average trucks, container ships and aircraft (see Mobitool database).

Restatements
A value adjustment of Health Supply’s diesel consumption for 2024 also leads to a significant increase in fuel consumption by service providers (in MWh) and the corresponding emissions compared to the published value. In the reporting year, this key figure is reported for the first time including deliveries by third parties and WTT emissions. The comparative values from the base year and the previous year are adjusted using the same method.

Category 7 – Employee commuting & home office

Scope and underlying data
The calculation takes into account all modes of transport that are, on average, relevant to commuters in Switzerland according to the Swiss Confederation’s statistical survey. Galenica does not have its own calculation bases with regard to means of transport and commuting distances. Emissions from work on days spent working from home are also taken into account. The calculation is based on the key employee figures from the Human Resources department expressed in full-time equivalents.

Emission factors
The emission factors for the use of cars (fleet average), motorcycles (petrol, fleet average), railways (Swiss railways, regional and long-distance transport average), public transport by road (urban bus (13 m), hybrid diesel, single-decker), e-bikes (average), bicycles (conventional, urban) and working from home (Work@Home, green electricity mix CH, based on an 8-hour day) come from the Mobitool database (Version 3.0). These also take into account upstream emissions for their use.

Calculation methodology and key assumptions
The calculation uses the statistical breakdown between modes of transport according to the survey by the Federal Statistical Office (FSO) on commuter mobility in Switzerland. In addition, the statistical mean for the average commuting distance is used. Two commuting journeys are assumed for each working day. The number of working days in question is calculated as statutory working days minus weekends, public holidays and leave. The more people work from home, the lower the number of journeys.

Restatements
This key figure was reported for the first time in the reporting year. The comparative figures from the base year and the previous year are calculated using the same method.

Category 8 – Upstream leased real estate

Scope and underlying data
At Galenica, emissions from the use of leased assets arise from the heating of rented spaces, particularly in pharmacies. As Galenica has no control over this energy consumption, the corresponding greenhouse gases are not included in Scope 1 and 2. Some Group companies collect data on heat consumption via the landlord in the same way as the energy consumption they monitor themselves. The heat consumption of 9 sites as well as the type of heating and its size are recorded on the basis of the retail space (2025: total 99.0% of relevant energy consumption for emissions in Cat. 8).

Emission factors
The greenhouse gas emissions caused by heat consumption are calculated using recognised conversion and emission factors (heating oil and natural gas: Swiss greenhouse gas inventory from the Federal Office for the Environment; wood pellets, district heating: UK Department for Environment, Food & Rural Affairs; heat pump: International Energy Agency (IEA; international electricity trading was taken into account)).

Calculation methodology and key assumptions
For pharmacies, heat consumption is extrapolated for all sites based on a representative sample of sites. Assuming that pharmacies are heated to a similar level on average, this is done via the ratio of the total space associated with the samples to the total retail space for all pharmacies.

Restatements
The previous methodology for recording heat consumption has been revised. The premises are leased at most Galenica sites, so it has no direct influence on heat generation. In line with the recommendations of REIDA (Real Estate Investment Data Association), a non-profit organisation for investment properties in the Swiss real estate market, Galenica therefore does not seek to control emissions from the energy sources used by landlords. From this reporting year, the corresponding greenhouse gases will therefore be recognised under Scope 3. In all cases where Galenica purchases its own energy sources from producers, the resulting emissions are reported under Scope 1 (heating oil, natural gas, wood pellets) and Scope 2 (district heating, heat pump).

This adjustment results in a restatement of the previous year’s figures. In 2023, emissions from the use of heating oil (503.8 tCO₂e), natural gas (730.1 tCO₂e), district heating (638.2 tCO₂e) and heat pumps (0.6 tCO₂e) were moved from Scope 1+2 to Scope 3, Category 8. For 2024, the shift amounted to 724.6 tCO₂e for heating oil, 675.4 tCO₂e for natural gas, 339.4 tCO₂e for district heating and 0.7 tCO₂e for the use of heat pumps.

Category 15 – Investments

Scope and underlying data
The calculation takes into account all associated companies and joint ventures according to the financial statements that are not already included in Scope 1 or Scope 2. The data is based on the financial information included in the consolidated financial statements of the Galenica Group in accordance with IFRS. Investments are classified according to industry activity (retail trade excl. motor vehicles, transport services, health and social services, education and other services).

Emission factors
The emission factors used come from the PCAF database (Partnership for Carbon Accounting Financials, in tCO₂e/million euro, 2019). Conversion is based on the ECB reference rates and the harmonised consumer prices provided by the FSO.

Calculation methodology and key assumptions
The emissions financed by investments are calculated methodically in accordance with the guidelines of the Partnership for Carbon Accounting Financials (PCAF) using the approach for business loans and unlisted equity interests. Economic activity data is used to calculate the relevant shares of emissions of the companies that are not included in Galenica’s scope of consolidation for financial control purposes. The factors (in tCO₂e/million euro) are converted to Swiss francs and adjusted for inflation since the PCAF base year. The conversion rates come from the European Central Bank and the inflation rates from the Federal Statistical Office.

Restatements
This key figure was reported for the first time in the reporting year. The comparative figures from the base year and the previous year are calculated using the same method.

Data on our employees and diversity among staff

The key figures on the number of employees (GRI 2-7) include all companies of the Galenica Group with a majority holding as of 31 December 2025 (including apprentices, interns and temporary employees).

However, more detailed key figures on employees, such as information on diversity (GRI 405-1), employee turnover (GRI 401-1), accidents (GRI 403-9) and illnesses (GRI 403-10), refer exclusively to companies that are fully integrated into the Galenica Group HR system, and the necessary information is available. For this reason, employees of the Labor Team Group in particular are not included in the detailed disclosures for 2025. Detailed key figures on employees cover 95.6% of the total employee population.

Data on employee turnover

Employee turnover is determined in two stages. On the one hand, employee fluctuation is determined on the basis of resignations, but also takes into account retirements (ordinary and early) and deaths.

Data on the “Opinio” employee survey

The “Opinio” employee survey is conducted annually by an external body in a standardised online format. In 2025, the survey took place between 14 October and 14 November, based on the number of employees as of September. All employees were surveyed, including apprentices and interns, but excluding temporary and external employees. Data from the “Opinio” employee survey also includes associated companies and joint ventures Coop Vitality, Coop Vitality Management, Curarex swiss, Mediservice and Emeda as well as employees of the Galenica Pension Fund. However, companies that are not fully integrated into the Galenica Group’s HR system, such as the employees of Aquantic, the newly acquired Labor Team Group and Dr. A&L. Schmidgall are not included. A total of 9,032 employees were surveyed.

The key figure for employee motivation is calculated from the arithmetic average of 16 questions from the “Opinio” employee survey. This average is then converted into a scale from 0 to 100.

Customer satisfaction data

Twice a year, an external market research institute is commissioned to survey the Net Promoter Score (NPS) by means of representative market surveys. Data is collected via online interviews as part of panels. Data is collected from over 2,000 pharmacy customers who are asked how likely they are to recommend a pharmacy format to others. People answer with a number between 0 (highly unlikely) and 10 (highly likely). Responses between 0-6 are classed as “detractors”, 7-8 are classed as “indifferent” and 9-10 are classed as “promoters”. To calculate the NPS, the percentage of “promoters” is subtracted from the percentage of “detractors”. The NPS can therefore be between -100 (very poor) and +100 (very good). The regular Net Promoter Score (rNPS) positions the NPS of Galenica in relation to the NPS of competitors. For competitive reasons, Galenica does not disclose the actual figure or distance to the best competitor.

The NPS is collected for the Amavita, Sun Store and Coop Vitality pharmacy formats and is included in the key figure accordingly. The measurement point relevant to the achievement of the objective is the average of the two measurements in the year. The degree of target achievement is based on the calculated rNPS for the second measurement point compared to the rNPS target defined by the Board of Directors.

Data on number of healthcare services

The healthcare services disclosed are provided in the Amavita, Sun Store and Coop Vitality formats’ pharmacies and charged to the customer via the healthcare system. A Pharmacode is stored for each service. This way, the number of healthcare services performed can be calculated and monitored accordingly. Values are rounded to the nearest thousand.

Restatement
The definition of the number of healthcare services was adjusted in 2025. In the past, the focus was on the number of services provided in acute care (primary care). From 2025, a broader view was taken, which includes services in the areas of vaccination services and other healthcare services such as heart checks and wound care. The previous year’s figures have been adjusted accordingly in accordance with the new definition.

Correction or restatements of information

The report includes detailed disclosures on key environmental, social and governance figures, including definitions, methods used and relevant assumptions, in particular in the area of key environmental figures and restatements where necessary.

We strive to keep the definition and calculation of our key sustainability figures consistent over time. Nevertheless, key figures or targets may be adjusted to best reflect our strategic priorities or changes to standards. In such cases – as well as in the case of material corrections from the previous year – the comparative figures are restated accordingly. The decision on a restatement is based on an overall assessment of the impact on the report.

Unless otherwise stated, the published key figures refer to the financial year and to actual data for the period January to December. Due to unavailability of data, some estimates have to be made.

Independent audit

Ernst & Young Ltd. was appointed by Galenica to perform a limited independent audit of selected key figures in the GRI report. Ernst & Young Ltd. is also the external statutory auditor of the Remuneration report, the consolidated financial statements in accordance with IFRS and the statutory financial statements of Galenica Ltd.

Further details on the audit can be found in the independent assurance report.

All audited figures in the sustainability reporting are marked in the report with the symbol ►.