Dear shareholders,

The first half of 2025 saw the Vetropack Group operating in an environment of great uncertainty. After a challenging 2024 – marked in particular by the closure of the St-Prex plant, declining demand, overcapacity, and sustained price pressure – the situation in most of our core markets continues to be tense. The recovery we were hoping for has not yet materialised. Instead, the consumer goods market in particular is proving to be very changeable – and this is impacting demand for glass packaging.

Against this backdrop, we are keeping firmly to our course: we are securing the financial stability of our Group of companies by implementing consistent cost control, a conservative investment and personnel policy, and proactive management of our production capacities. At the same time, we are targeting our investments at projects that will strengthen our competitive edge in the long term and drive our Strategy 2030+ ahead. In all these ways, we are creating the conditions that will enable us to respond quickly to changing market developments, even in a volatile environment.

Development of key figures

Net sales amounted to CHF 412.7 million in the first half of 2025 – a decrease of 7.2 percent compared to the same period of the previous year. In the first half of the year, the adjusted EBIT margin fell to 5.5 percent (first half of 2024: 8.5 percent). The main reasons for this are volatile energy prices and muted demand from end consumers. The cash flow margin is running at 12.5 percent compared to 15.2 percent in the same period of the prior year. There was actually a slight increase – of 4.3 percent – in our consolidated profit, bringing the figure to CHF 9.8 million. The Vetropack Group continues to be in a very solid position, with a gearing ratio of 60.3 percent.

Development of sites continues to advance

The challenging market environment at present is highlighting the value of our Group-wide collaboration. Thanks to interchange across all our locations, we are able to respond flexibly to changes and – despite strict cost management – we can selectively implement the necessary investments. In the first half of the year, this has enabled us to press ahead as planned with important projects such as modernisations, the expansion of renewable energies, and production relocations. In the medium term, these measures will strengthen our Groupʼs resilience and prepare us for a possible market recovery.

Ukrainian plant: sending out a strong signal of resilience

Current developments at our production site in Hostomel near Kyiv show why this is important: in June, the second repaired furnace successfully resumed operation there. This could only be achieved thanks to the extraordinary commitment of our team on site. The production facilities, which were severely damaged in the first weeks of the war, were repaired over a period of months under the most difficult conditions. The solidified glass in the two remaining furnaces had to be removed manually, and the technical equipment was gradually renewed.

This tremendous effort is now paying off, and this step marks a major milestone on our plantʼs path back to its original production capacity. Commissioning took place at exactly the right time: despite ongoing uncertainties in the country, demand for glass packaging on the Ukrainian market showed double-digit growth in 2024. The trend is expected to be similarly strong in 2025 and the following year. By reactivating the second furnace, we are consolidating our market position both in Ukraine and in neighbouring export markets such as Romania.

St-Prex: dismantling of the plant continues

At the St-Prex site, on the other hand, we are continuing to make progress with our departure: dismantling of the plant there is advancing according to plan. In recent months, most of the plant and machinery has been relocated to other sites in our Group, or sold – so all the machines from St-Prex are now embarking on a new usage phase in other locations. Most of the production facilities have been dismantled, but cullet processing continues to operate.

Despite our withdrawal from production in Switzerland, our home market continues to be crucially important for us. This means we are all the more pleased by our success in mastering the new delivery routes from other Vetropack plants, thanks to trust-based collaboration with our customers. We remain committed to the recycling of used glass, and we take on responsibility for a sustainable circular economy. Our goal is to work with local authorities to develop a good solution for cullet processing by mid-2026, so we can then start the next phase of dismantling.

New Managing Director in Italy and investments in sustainability

At the beginning of April, we were able to introduce Riccardo Gobbis, our new Managing Director in Italy, who comes equipped with extensive experience in our industry. Under his leadership, we intend to continue increasing the performance and competitiveness of our site at Boffalora sopra Ticino.

One part in achieving this goal will be played by the new photovoltaic system that supplies green electricity to the state-of-the-art production facility. Construction of the PV system began in July, and it is due to be commissioned at the start of 2026. Its output will correspond to the annual electricity requirements of around 5 000 households.

In our Croatian plant at Hum na Sutli, we commissioned what is now our third photovoltaic system at the end of May 2025. With 4 438 solar panels, it will supply renewable energy to meet part of the electricity demand in future, saving over 300 metric tons of CO₂ each year. In combination with the modernised plant, the new PV system signifies enormous progress in sustainable production.

Innovation: in production as well as products

As this example shows, Vetropackʼs investments in innovative technology usually go hand in hand with enhanced sustainability. In fact, optimisation of our furnaces is the most effective step we can take to reduce emissions. On new buildings or modernisation projects, we achieve energy savings of 10 to 15 percent.

Innovation is one of the cornerstones of our Strategy 2030+, in terms of our production as well as our products. At present, the focus here is on expanding production capacity for our thermally tempered lightweight glass bottles in Austria. In June, Vetropackʼs Board of Directors gave the green light for a major increase of production capacity in Austria for this innovative solution, which has already won the prestigious WorldStar Award from the World Packaging Organisation (WPO) for the second time. The team in Pöchlarn is currently preparing the infrastructure to install the first large-scale industrial plant, which will go into operation as early as summer 2026.

PPWR: strengthening the positioning of glass packaging

When it comes to sustainability, glass already outperforms other packaging materials. This is also evidenced by the new EU Packaging and Packaging Waste Regulation (PPWR), which came into force in February this year. We welcome the new regulations, which set clear targets for recycling rates and returnable systems. As a 100 percent recyclable packaging material, glass is ideally suited to these requirements. We firmly believe that the PPWR will boost the importance of glass packaging in Europe over the long term – in terms of ecology as well as economics.

Outlook for the second half of 2025

We are seeing first positive signs in some markets, but the overall situation is not yet stable. Uncertainties and global risks will continue to be the keynotes in the second half of 2025. The war in Ukraine is continuing, and economic policy changes in the United States may influence global markets and thus impact our Group of companies as well. However, our sound financial base, our innovative strength and – last but not least – the team spirit of our employees across all our locations provide strong foundations for the continued success of our Group going forward.

We expect sales and profitability to show stable development in the second half of the year. With this in mind, we are focusing particular attention on optimising our liquidity so we can continue to strengthen the Vetropack Groupʼs balance sheet, which is already solid. As forecast in March, we expect consolidated profit for 2025 to be higher than in the prior year.

This is also the last semi-annual report for our CEO Johann Reiter in the post he has held for many years, because he will be retiring due to his age. Dr. Lukas Burkhardt, an experienced expert with inside knowledge of our industry, will take over management of the Vetropack Group at the end of 2025/start of 2026. We would like to take this early opportunity to thank Johann Reiter for his enormous personal commitment and his significant contributions to the development of our Group.

Bülach, 26 August 2025

Claude R. Cornaz

Chairman of the Board of Directors

Johann Reiter

CEO