Dear Shareholders,

On behalf of the Board of Directors and the Remuneration and Nomination Committee (RNC), I am pleased to present PolyPeptide’s Remuneration Report for 2025.

This report provides an overview of PolyPeptide’s remuneration framework, its governance and the principles that ensure compensation, particularly variable components, is aligned with PolyPeptide’s strategic objectives, sustainable performance and shareholder interests.

2025 was a year of strategic capacity investments, marked by the ramp-up of the large-scale SPPS capacity in Braine-l’Alleud, the successful delivery and installation of pre-built modules in Malmö and the newly added SPPS capacity expansion in Strasbourg becoming operational, with production expected to ramp up throughout 2026. In addition, the Group announced an investment at its Ambernath facility planned to increase production capacity, transforming it into a larger and more diverse site. Collectively, we believe that these developments position PolyPeptide for sustainable growth and enhanced global capabilities in a dynamic peptide therapeutics market. Against this backdrop, the RNC worked to ensure that our remuneration policies continue to support the Group’s long-term ambitions while reflecting shareholder expectations and evolving governance standards.

Incentive Programs

Throughout the year, the RNC focused on strengthening pay-for-performance alignment and embedding sustainability priorities into our incentive structures. The Long-Term Incentive Program (LTIP) continues to emphasize Revenue, EBITDA and Total Shareholder Return (TSR) as core metrics, reflecting our ambition for growth, operational excellence and shareholder value creation. We further expanded the LTIP participant group targeting key managerial roles, while preserving flexibility to attract external talent. The Short-Term Incentive Program (STIP) maintains consistent weighting across the Executive Committee, with 85% tied to Group financial and sustainability objectives, reinforcing the Group’s financial performance and commitment to corporate responsibility. In addition, we introduced a new clawback provision to the STIP, further strengthening management’s long-term accountability.

Market Benchmarking

Building on previous surveys, we conducted benchmarks against peers to ensure our remuneration and governance approach reflects market practice and evolving trends. This process included reviewing the Group’s compensation, policy, strategy and principles as well as considering peer remuneration and governance structures and sustainability-linked incentives. These assessments have been valuable in shaping our policies and ensuring that our remuneration and governance framework remains competitive, fair and aligned with long-term value creation.

Governance and Succession Planning

Governance and succession planning also remained key priorities. The RNC maintained an active succession planning approach to ensure leadership continuity. During the year, the RNC led the onboarding of Jo LeCouilliard, new member of the Board elected at the AGM 2025. Furthermore, updates to the Organizational Regulations and regular reviews of committee charters and authority levels reinforce robust governance and ensure compliance with evolving standards. In addition, the RNC oversaw and reviewed the results of the annual Board self-assessment as well as a management survey on Board effectiveness, ensuring continuous transparency and evolution.

People and Engagement

One of our key priorities is PolyPeptide’s “People”, as the RNC’s entrusted material sustainability topic. In 2025, the RNC, together with the Group’s Chief Human Resources Officer, reviewed the progress of organizational initiatives aimed at attracting, developing and retaining talent. Throughout 2025, PolyPeptide invested in the recruitment and development of qualified workforce for capacity expansion and strategic projects. We continuously focus on the further development of the organization, talents and succession pipeline. The RNC reviewed key people KPIs as well as the outcomes of the annual Group-wide talent review process. In addition, employees were invited to the annual Employee Engagement Survey to share their feedback and insights. These initiatives reinforce our ambition to be an employer of choice in our sector, committed to fostering a fair, inclusive and respectful work environment offering meaningful development opportunities.

Ongoing Priorities

Looking ahead, the RNC will continue to monitor the effectiveness of the revised LTIP and STIP structures to maintain an active understanding of stakeholder expectations and ensure alignment with governance standards and market trends. We will also continue to regularly review emerging best practices and regulatory developments to keep our remuneration policies robust and forward-looking. Our approach will continue to be rooted in pay-for-performance, fairness and transparency.

At the AGM 2026, shareholders will be invited to cast a consultative vote on this Remuneration Report and approve the aggregate compensation for the Board of Directors (until AGM 2027) and the Executive Committee for FY 2027 through binding votes. We respectfully request your approval of these agenda items at the AGM 2026.

On behalf of the Board and the RNC, I thank you for your trust and continued support. We remain committed to transparency, accountability and a remuneration framework that reflects our focus on performance and corporate responsibility.

Sincerely,

Philippe Weber
Chair of the Remuneration and Nomination Committee