GoingPublic-Schweiz-2021-e

Cover
Editorial

A strong Switzerland
Content
Leading Swiss index grows – backlog in IPOs

Attractive investment climate despite pandemic
Where the leading Swiss index is going
Martin Utschneider, Donner & Reuschelr
Technical analysis
The capital band – a new and flexible instrument in Switzerland
Dr Wolfgang Müller, Dr Alexander Vogel, Marc Baumberger, MLL
Adjusting share capital faster
Decisive spark
Patrick Förg, SIX Group
Through Sparks, SMEs can go public on SIX Swiss Exchange
Into the capital market spotlight with digital strategy
Cédric Baumgartner, EQS Group
How companies are mastering IPOs with automated processes
The latest in sustainability reporting
Dr Petra Nix und Beat Andreas Schweizer
Balancing act between differentiation and consolidation, regulation of varying interests and the role of the capital market
“In five years, every company will publish their reports online first”

Interview with Gert Schröder, NeidhartSchön AG
“Corona has made communicating across countries even more challenging”

Interview with Nina Zolezzi, EnglishBusiness AG
What does investor relations have to do with sustainability?
Joss Tantram
Sustainability at the heart of Investor Engagement
Partner Portraits
Imprint

September 2021 – 12,50 EUR (D) – www.goingpublic.de 2021 Pflichtblatt an allen deutschen Wertpapierbörsen Das Kapitalmarktmagazin GoingPublic Magazin Börse–Finanzierung–Wachstum Special Capital Market Switzerland (Vol. ) With supplement nsurance 2021 (48 pages, Vol. 4) SMEs in focus The new stock segment “Sparks” Digital Reporting “Online-first” soon standard? New stock corporation law The capital band and its advantages

Editorial Editorial A strong Switzerland For the ninth time in a row, our “Capital market Switzerland” special will look towards our neighbours: this one possesses impressive economic stability and a diverse and strong capital market. Once again in 2021, we have more than enough topics to help our readers get to know and evaluate Switzerland and its capital market. This is the second year of the coronavirus pandemic, and it has also left its mark on the Swiss economy. In our introductory article, author Yannick Barth describes how the neighbouring capital market recovered remark- ably quickly and how the SMI grew considerably. The only place where things still look rather grim in Switzerland is with regard to IPOs. Only two companies, Polypeptide and Montana Aerospace, ventured into the stock market in 2021. We examine the reasons, and also look at the rest of the year as well as additional possible IPOs. But even now, there are also good news: Three more companies from Switzerland went public on the US NASDAQ. We also illuminate the changes that have been introduced in Switzerland with the revision of stock corporation law. Issuers will soon have considerably more leeway regarding the possibility of using a capital spread under which share capital may be increased or reduced. Dr Wolfgang Müller, Dr Alexander Vogel and Marc Baumberger explain how the instrument works in detail. We have of course taken up other exciting developments as well – the SME stock segment Sparks of the SIX index and trends in digital reporting. When it comes to creating reports online, our neighbours are significantly ahead of us. Though many companies already rely on online reporting, PDFs continue to prevail in Germany. In an interview, Gert Schröder explains why they are still not obsolete. We are delighted to be able to catch you up on the important Swiss trends and develop- ments and hope you find informative reading in our “Capital market Switzerland” special. Isabella-Alessa Bauer, Editor in Chief, GoingPublic Magazin Special apital aret Switerland 2021 3

Content m o c . e b o d a . k c o t s – l l i m e e f f o c © : o t o h P Corona has hardly affected the Swiss capital market – a stable economic climate helps. But concerning IPOs, there is room for improvement. Pages 6–9 Switzerland needs a properly function- ing public SME capital market. SIX wants to support SMEs in finding investors and capital with the new stock segment Sparks. Patrick Förg explains the details. Pages 14–15 Law 12 The capital band – a new and flexible instrument in Switzerland Adjusting share capital faster Dr Wolfgang Müller, Dr Alexander Vogel, Marc Baumberger, MLL IPO 14 Decisive spark Through Sparks, SMEs can go public on SIX Swiss Exchange Patrick Förg, SIX Group 16 Into the capital market spot- light with digital strategy How companies are mastering IPOs with automated processes Cédric Baumgartner, EQS Group Digital reporting has experienced a boost in the pandemic. In our interview, Gert Schröder explains which role HTML reporting plays today in Switzerland. Pages 24–25 4 Special apital aret Switerland 2021 3 Editorial A strong Switzerland Introduction & Background Being Public/Investor Relations 6 Leading Swiss index grows – backlog in IPOs Attractive investment climate despite pandemic 10 Where the leading Swiss index is going Technical analysis Martin Utschneider, Donner & Reuschelr 20 The latest in sustainability reporting Balancing act between differen- tiation and consolidation, regu- lation of varying interests and the role of the capital market Dr. Petra Nix, Beat Andreas Schweizer, PETRANIX AG 24 “In five years, every company will publish their reports online first” Interview with Gert Schröder, NeidhartSchön AG 26 “Corona has made communi- cating across countries even more challenging” Interview with Nina Zolezzi, EnglishBusiness AG 28 What does investor relations have to do with sustainability? Sustainability at the heart of Investor Engagement Joss Tantram, WBCSD Service 30 Partner Portraits 32 Imprint

Thank You.* m o c . e b o d a . k c o t s – l l i m e e f f o c © : o t o h P *) The Special “Capital Market Switzerland“ was published with the support of:

Introduction & Background eading Swiss inde grows – Ps remain the eception Attractive investment climate despite pandemic Though the effects of the global coronavirus pandemic also left their mark on Switzerland, the Alpine republic can rely on a stable political and economic environment even in a difficult climate. On balance, the Swiss capital market was able to grow by 21% year-on-year in its representative benchmark Swiss Market Index (SMI). New issues have so far remained the exception in 2021, as they had been in the previous year. By annic arth T he past twelve months have seen no shortage of diverse challenges for the global economy. The ulti- mately strong domestic economy was faced with sharply increasing inflation rates, production bottlenecks due to in- terruptions in supply chains and rapidly changing consumer demand. However, the Swiss capital market was once again unfazed by these developments. Rapid comebac leads to new alltime high in S Though the second quarter of 2020 still show- ed a drastic slump and 2.6% lower GDP year- on-year on paper, an equally rapid race to catch up followed. This led to a new all-time high of over 12,540 points in Switzerland’s leading index SMI. In 2021 alone, the increase has been more than 15 percentage points so far and is thus at roughly the same level as its German counterpart, the DAX. According to the most recent forecast from the Swiss State Secretariat for Economic Affairs this June, the robust recovery of the domestic economy may result in GDP growth of up to +3.6% in 2021. e c a p s o r e A a n a t n o M © : o t o h P Marc Vesely recte Riha, Head of M&A and IR, Dr. Markus Nolte, CEO Montana Aerospace AG, DDr. Michael Tojner, Co-Board President of Montana Aerospace, Dr. Michael Pistauer, CFO Montana Aerospace in Switzerland. These The SMI covers the 20 biggest listed com- panies include world-famous quality firms such as phar- maceutical company Roche and major bank UBS. According to the most recent forecast from the Swiss State Secretariat for Economic Affairs (SECO) this June, the robust recovery of the domestic economy may result in GDP growth of up to +3.6% in 2021. For 2022, the experts predict equally above-average growth rates of +3.3%. Extensive government support is also a contributor to this. As of August this year, approved Swiss aid to counter the effects of the coronavirus pandemic had already totalled over CHF 24 billion for 2021. Swiss Ps displa renewed elegant restraint A rather mixed IPO year in 2020 with only two new issues has been followed by an as-yet equally restrained 2021. Neverthe- less, two Swiss companies have made the leap onto the stock market. The PolyPeptide Group started things off. Shares of the bio- technology/life sciences company were traded for the first time on 29 April of this year. In addition, Montana Aerospace, an avia- tion-focused manufacturer of complex light- weight components, successfully launched their IPO on 12 May. The Swiss companies VectivBio Holding, Molecular Partners and NLS Pharmaceutics chose the US NASDAQ 6 Special apital aret Switerland 2021

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Introduction & Background Swiss Market Index over the course of a year SMI Index PI WKN: 530288 Schweiz Zürich Performanceindex Punkte 26.000,00 24.000,00 22.000,00 LOG Source: Tai-Pan technology market for their IPOs. Trifork Holding, also a Swiss company, completed their new issue on the NASDAQ Copenhagen A/S. This means that so far in 2021, there have ultimately been as many IPOs on the Swiss stock markets as there were last year. In 2020, V-ZUG Holding and Ina Invest Hol- ding made the jump onto the exchange floor. Montana Aerospace reports that choosing the right stock exchange was a challenge. The global company’s main economic acti- vities take place in the Americas, Asia and Europe. Possible alternatives for a listing would have included the US NASDAQ or the Frankfurt Stock Exchange. Ultimately, they chose the Swiss SIX. The deciding factors were the extremely consistent investor landscape in Switzerland and their “deep roots” in a long, successful joint history with the Canton of Aargau. They can carry weight in Switzerland, unlike in the US, where Montana Aerospace would have been a small listed aerospace company – one of many. The number of IPOs in 2020 and 2021 was si- gnificantly lowerthan that of the previous years. In 2019, there were seven companies in total that entered the exchange; in 2018, there were twelve. Conversely, there was a significant increase in international IPOs this year: the global issue volume rose to USD 91.8 billion in the first quarter of 2021, equivalent to a remarkable increase of 223% on the previous year. The US and China were especially active. Will 2021 usher in more Ps What should investors expect for the rest of this year? With regard to new issues in the remaining calendar year, Swiss capital market circles practically have a tradition of reticence. We can therefore only make assumptions about potential candidates. For instance, there might be a spin-off IPO of ABB’s turbocharger division. There are also rumours about a possible IPO from sports shoe manufacturer ON, though they may choose to go to the US capital market. It’s 8 Special apital aret Switerland 2021 possible that the global trend of “IPO via SPAC” will also catch on in Switzerland. However, a number of bureaucratic hurdles would need to be overcome for this under- taking. As usual, further IPOs are depen- dent on a number of things, including macroeconomic factors and the general economic environment. Switerland – innoatie and resilient The many advantages of the Swiss stock market environment continue to be im- pressive in 2021. The Alpine republic is not just home to numerous highly stable and reliable companies: in fact, many in- novative software and biotech compa- nies have also settled in Switzerland. This combination of stability and innova- tion has generated attractive returns for investors for years. The SXI Bio+Medtech Index even reached a new all-time high this year. Once again, the traditionally high investments in research and deve- lopment are paying off. The Swiss banks have also proven especially resilient in the face of the vola- tile environment. Their strict cost and risk management, combined with the expansion of their own funds since the financial crisis of 2008, had a positive effect. The ongoing zero or negative inte- rest rate phase is a cause for concern. Thomas Buri, VV Vermögens- verwaltung AG

Introduction & Background the natural capital category in particular. Other factors in the report’s scoring model included human capital, social capital and economic capital. Summar This year and last year have not lacked for challenges, and Switzerland has not been spared. The effects of the coronavirus pan- demic, a complex market environment and also political risks kept global markets on the move. These upheavals also left their mark on the relatively small Alpine republic. Even so, the Swiss once again showed their distinctive resilience. Switzerland was ulti- mately able to counter a significant pande- mic-related economic slump with equally remarkable economic growth in 2021. The Swiss capital market thus once again pro- ved to be a reliable investment target and to provide effective protection against rising inflation rates. New all-time highs in the large Swiss indices SMI and SXI Bio+Medtech con- firm this. A higher number of Swiss IPOs in 2020 and 2021 would have been desir able. With just two new issues each year up to now, there is potential to catch up, espe- cially compared to the globally booming IPO market. However, if the general condi- tions continue to stabilise throughout the rest of the year and the coming year, nothing stands in the way of more IPOs. The outstanding prospects of the world’s tenth largest economy in terms of gross domestic product remain intact. Biotech, medicine, and stable banking and consumer goods sectors are the pillars of the Swiss success story. Switzerland, which ranks second in the world in terms of GDP per capita, is also traditionally characterised by a stable service sector as well as flou- rishing industry and tourism. New records ■ are certainly only a matter of time. IPOs in Switzerland - new issues from 09/2020-09/2021 Name/Symbol PolyPeptide Group AG/PPGN Montana Aerospace/AERO CH1110760852 CH1110425654 ISIN Branch Issue date Share price Market Cap Biotech 29.04.2021 125,00 CHF 4,7 Mrd. CHF Aerospace 12.05.2021 39,15 CHF 1,7 Mrd. CHF 440 Mio. CHF 12,18% 668,5 Mio. CHF Issue proceeds 737 Mio. CHF Performance since issue date 59,85% Sales 2020 239,44 Mio. CHF Source: our representation Important sources of revenue in the form of higher interest bearing loans and other long-term financial assets are also expiring. As a result, more and more banks are charging their customers nega- tive interest rates. Five years ago, 70% of banks still categorically refused to do so, but according to a 2020 E&Y industry re- port, currently only 11% will not charge negative interest under any circumstan- ces. To tap into new sectors, innovations are increasingly in demand. Expert Thomas Buri from VV Vermö- gensverwaltung sees the comparatively low number of IPOs in the last two years primarily as a result of the uncertainty brought on by the global pandemic. Com- pared to the US, Switzerland is home to an increasing number of niche compa- nies, but with global market leaders in the niche. He notes that Swiss investors particularly focus their new investments on good products, a proven management team and a Swiss production site. If this story were to stay consistent in the future, the Swiss capital market expert sees good chances of success. In times of low interest rates, Buri explains, sufficient capital is available, after all. rend towards sustainable inesting continues Global trends affect Switzerland as well. Banks and asset managers here are also feeling the increasing demand for ESG- friendly investment opportunities. The SIX Swiss Exchange has already launched its own ESG-based index and is planning further issues. In 2020, the volume of sus- tainable funds in Switzerland accounted for more than half of the entire Swiss funds market for the first time. Asset ma- nagers have a duty to offer their custo- mers ESG-friendly investment vehicles. Switzerland has a lot to offer in that de- partment; in its ESG country report from the beginning of the year, New York- based asset manager Candriam ranked Switzerland number one in the world in terms of sustainability. This puts Switzer- land ahead of both Sweden and Denmark; the Alpine republic received top marks in Special apital aret Switerland 2021

Introduction & Background Where the leading Swiss inde is going Technical analysis On the charts at the end of August 2021, the Swiss Market Index (SMI) is in an intact upward mode. Since the coronavirus crash of 2020, the SMI has increased by up to 4,800 points. This is equivalent to an increase in value of approximately 62% within 17 months. artin Utschneider What will happen next? Will the previous high of 12,573 be- come a topic again? Or does a relapse into the recently abandoned June/July consolidation perhaps threa- ten? Let us first of all look at the market-speci- fic indicators that are decisive for tracking the trend. The MACD index testifies to sus- tainable and intact technical strength. Nothing here currently indicates a break in or reversal of the trend. Likewise, the “everything at a glance indicator” Ichimo- ku Kinko Hyo displays evident trend con- sistency. Neither the signal lines nor the cloud constellation (kumo) give cause for concern. The long-term primary trend even indicates no weaknesses at all at the moment. Let us now have a look at the medium- term secondary trend. The Bollinger Bands lend themselves well here. The middle band can be categorised as bet- ween 12,596 and 12,152 index counters. The lowest Bollinger Band tends lately to be almost precisely on the upper con- solidation line. Thus, these two marks (12,152 and 12,143) are a confirmed sup- port area. The height of the fall in the case of eventual profittaking and short- term setbacks is therefore relatively low. Those who want to set hedges in the form of stop-loss orders can orient them- selves well toward this. So much for hedging and a hypothetical drop. What does the current SMI chart show in the medium term for market-induced upward opportunities? The Fibonacci Projections can be of assistance here. As measured by the currently prevalent chart view, the next target prices are therefore 12,593, 12,684 and 12,775 points. All three of these are above the previous high of 12,573. onclusion The upward mode on the charts continues to be intact. For the time being, there is a decent cushion for potential setbacks at approximately 12,140. However, based on the individual Fibonacci Projections, these change nothing with regard to medium-term target prices. In addition, the upper Bollinger Band and the 38% Fibonacci Projection recently confirm one another. These both also tend to have nearly equal points. “The trend stays your friend” – as do the market- ■ specific indicators. Swiss Market Index (SMI) & 200-day-line 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 Source: Donner & Reuschel 10 Special apital aret Switerland 2021 U E UR Martin Utschneider is Director of Technical Analysis at the Donner & Reuschel private bank. He previously worked for a notable Austrian private bank. In addition, he is a spe- cialised lecturer and auditor. Utschneider has more than 25 years of practical experience in the field of technical analysis. His analyses are sent daily to private and institutional inve- stors in German-speaking markets and to the corresponding specialised media.

ZURICH GENEVA ZUG L AUSANNE LONDON MADRID The Swiss Law Firm of the Future MLL is your leading law ﬁrm in Switzerland. After our merger with Froriep which we com- pleted as of 1 July 2021 we support you with 150+ lawyers out of Switzerland (Zurich, Geneva, Zug and Lausanne) and through our international oﬃces in London and Madrid. Contact Capital Markets Expertise Dr. Wolfgang Müller MBA wolfgang.muller@mll-legal.com Dr. Catrina Luchsinger Gähwiler catrina.luchsinger@mll-legal.com As a recognized representative of the SIX Swiss Exchange MLL advises banks, issuers and investors on all capital market transactions including capital raising, structured ﬁnance, fund formation and related regulatory matters. MLL is also highly specialized in FinTech matters and has become a leading ﬁrm in advising clients on ICOs, blockchain and digital transformation. Andrea Sieber, LL.M. andrea.sieber@mll-legal.com Dr. Christoph Heiz, LL.M. christoph.heiz@mll-legal.com MLL Meyerlustenberger Lachenal Froriep Ltd www.mll-legal.com | www.mll-news.com

Law he capital band – a new and leible instrument in Switerland Adjusting share capital faster For many years now, there has been a plan to revise Switzerland’s corporate law on companies limited by shares (corporations). One new feature of the coming legislation, which is currently planned to come into force in 2023, is what is known as the “capital band”. It represents more flexible rules on company foundation and capital. The new possibilities which will come with the capital band aim to change the existing mechanisms on how corporations can change their share capital and adjust to economic developments quickly. Dr Wolgang ller, Dr leander Vogel, arc aumberger oncept Currently, the share capital of a company is fixed at the time of incorporation and can be changed later by means of an ordinary, authorised or conditional capital increase or a constitutional/ordinary or declarative capital decrease. In the future, at the time of the establishment of a corporation or any time later, the general meeting may decide through an authorisation in the articles of association that the board of directors is authorised to change the share capital with- in a defined range – the capital band – over a maximum period of five years. This gives the company the possibility to manage its capital structure flexibly and to adjust the share capital to the company’s needs in a timely manner. There are three options of the capital band: the general meeting may authorise the board of directors to increase or decrease the capital within a certain range, or it may combine the two options. The capital band, which combines the possi- bility of an authorised capital increase (which existed already under the current law but only for a period of two years) with the possibility of an authorised capital decrease, is a new instrument in Switzerland. mplementation A new company can implement the capital band in its articles of association at the time of its establishment or at a later point through a shareholders’ decision, which requires a qualified majority of (cumulative) two-thirds of the votes represented and a majority of the par value of the shares represented. Capital Band Share capital CHF 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0 Example 1 Example 2 Example 3 Capital Increase Registered Share Capital Capital Decrease Source: MLL Meyerlustenberger Lachenal Froriep AG The minimum content of the statutory provision is, depending on which option has been chosen, the upper and/or lower limit of the capital band, the term as well as the number, the nominal value and the type of shares covered. Additionally, the authorisation of the board of directors may be specified with further restrictions, require- ments, and conditions. This gives the general meeting a tool to regulate the scope of action of the board of directors. For instance, it could define a specific use for changes of the capital or define the number of or set conditions for capital changes within the capital band. In relation to the capital decrease, it is also important to mention that this option is only available if the company does not have an opting-out U E URS Dr Wolfgang Müller, MBA (left), Attorney and Partner at MLL Meyerlustenberger Lachenal Froriep AG, Dr Alexander Vogel, LL.M. (mid), Attorney and Partner at MLL Meyerlustenberger Lachenal Froriep AG, Marc Baumberger, MLaw, LL.M., Attorney and Associate at MLL Meyerlustenberger Lachenal Froriep AG. 12 Special apital aret Switerland 2021

Law A capital decrease within the capital band reduces the liability substrate, which is why creditor protection provisions must be observed. A capital decrease within the capital band reduces the liability substrate, which is why creditor protection provisions must be observed. However, the capital decrease can be decided by the board of directors, and it can only go below the registered share capital if the creditors have been invited to file their claims and an audit certificate is available. Use o the capital band Once the capital band is adopted in the arti- cles of association, the board of directors can increase and decrease the share capital several times, within the limits set by the general meeting. If the board of directors increases or decreases the share capital, it does so by means of a public deed and an amendment to the articles of association. In case of a capital increase the board conducts the increase in accordance with the regulations of an ordinary or conditional capital increase. If the general meeting has not defined the method of the subscription of the new shares, the board can take such decision. In case of a capital decrease the board con- ducts the decrease in accordance with the regulations of an ordinary or declarative capital decrease or by a capital reduction. increase or decrease, the board of directors must file the new amount of the share capital with the Commercial Register within six months from the respective resolution. the capital Following Protection o shareholders and creditors The shareholders have a subscription right with respect to capital increases within the capital band in accordance with their previous stake. If the subscription right is to be restricted or withdrawn, the respective authorisation must be stated in the articles of association and the important reasons for which the board of directors may restrict or withdraw the subscription right must be specified. onclusion The capital band allows a company to give its board of directors the flexibility to adjust its share capital within a range defined by the general meeting. The dele- gation of competences from the general meeting to the board of directors gives the company the possibility to adapt its share capital faster to the company’s needs. It is expected that the capital band will be a most welcome instrument for many com- ■ panies. Special apital aret Switerland 2021 1 and is subject to a limited or full audit. The protection of creditors is thus still assured. imitations When introducing the capital band, as mentioned, the lower and/or upper limit of the capital band is to be specified. The upper limit of the capital band may not exceed the share capital entered in the commercial register by more than half and the lower limit may not fall below it by more than half. However, since share capital must always amount to CHF 100,000, this amount is the lowest possible limit of a capital band. An uncertainty arises in connection with the capital decrease through the acquisi- tion of own shares. In accordance with the law, a company can only repurchase 10% of its own shares with unrestricted transfera- bility. A deviation from this rule is possible if the repurchased shares are intended to be cancelled in a capital decrease. Decreasing the share capital within the capital band could result in a repurchase of more than 10% of a company’s own shares and it has not yet been decided how this conflict will be solved. The duration for which the board of direc- tors has received the authorisation of a cap- ital change within the capital band is limited to a maximum of five years. However, changes and extensions to the provision of the capital band in the articles of association may be made by the general meeting at any time, even before the expiry of the authorisation period. The duration of the authorisation begins with the resolution of the general meeting and must be recorded in the articles of association with a reference to the end date.

IPO Decisie spar Through Sparks, SMEs can go public on SIX Swiss Exchange A properly functioning public SME capital market is of great importance for Switzerland, because it helps SMEs to efficiently generate growth capital and banks to enable new services for institutional customers and offer new investment ideas to investors, it enables investors to benefit from the Swiss value creation and to make a positive contribution through their investments, and it supports the creation and preservation of jobs and expertise in Switzerland. Patric örg The needs of adequate investor protection are taken into account analogous to the main market. In contrast to European SME Growth Markets, Sparks will be a regulated stock exchange segment (shares are for- mally listed and not simply admitted to trading as on European SME Growth Mar- kets). A new trading model takes into account the lower trading liquidity on the sec- ondary market of companies with lower market capitalisation and is intended to optimally shape pricing and trading (best execution). SIX Swiss Exchange coordinates the deployment of ancillary services which is Head Origination U E UR Patrick Förg in the Primary Markets team at SIX Swiss Exchange, which is operated by the SIX Group. He and his team are responsible for the listing/IPOs of companies and the posi- tioning of SIX Swiss Exchange as a listing destination for both Swiss and internati- onal companies. Prior to joining SIX Group, Patrick Förg spent twelve years in the Corporate Finance & Treasury department of the Holcim Group. I X S © : o t o h P T oday, most SMEs are underserved by the Swiss public capital market. Most of these companies – even the most valuable ones – can hardly generate larger sums of capital in Switzerland. If this situation is not improved, potential front- runners may not grow as planned or may leave Switzerland to obtain the necessary capital from foreign investors and markets. The new stock segment of SIX Swiss Exchange Sparks aims to facilitate the capital market in Switzerland for SMEs by developing a functioning public stock market. with the name Sparks aims to facilitate the capital market in Switzerland for SMEs by developing a functioning public stock market that specialises in such companies – both the ones experiencing rapid growth and their already established counterparts. e acts about Spars The primary advantages for SMEs are mainly created by improved and efficient access to growth capital and access to inves- tors, increased visibility and the regulated, daily state-of-the-art trading of their equity securities. In short, the pillars of the new stock segment are as follows: SIX Swiss Exchange introduces a new stock segment for SMEs with a market cap- italisation of up to CHF 500 million at the time of their listing. The requirements are lower than for issuers on the main market – but robust enough to admit high-quality SMEs. 1 Special apital aret Switerland 2021

IPO Requirement SIX Main Market Segment SIX Sparks (SME Segment) Benefits of Sparks for SMEs and their investors Track Record > 3 years (exemptions possible) > 2 years (exemptions possible) Simplified access for young companies Equity capital > CHF 25 million* > CHF 12 million Equity capital increase Free float (in %) n.a. > 20% > CHF 8 million (if equity capital < CHF 25 million) > 15% Free float (in CHF) > CHF 25 million > CHF 15 million Number of shareholders n.a. > 50 Increased “quality” through liability capital requirements (especially compa- red to European SME Growth Markets) Broad(er) shareholder structure, which increases the liquidity of the secondary market Maximum market capitalisation (upon listing) n.a. Maximum market capitalisation (post listing) n.a. < CHF 500 million < CHF 1.0 billion (if the average market capitalisation of an issuer succeeds this threshold over a period of 12 months, the issuer will be transferred to the SIX Main Market Segment) The company is in the right ecosystem for it with the relevant market partici- pants for the respective ecosystem. This also increases the visibility of the com- pany. Trading hours Opening auction at 09.00 am Continuous trading until 05.20 pm Closing auction and “TAL” until 05.40 pm Opening auction at 03.00 pm Continuous trading until 05.20 pm Closing auction and “TAL” until 05.40 pm Increased effectiveness of pricing and trading and reduced risks of (potential) market manipulation All listing requirements need to be fulfilled upon listing (first day of trading) * The equity capital requirement for the SIX Main Market Segment will be increased from > CHF 2.5 m to > CHF 25.0 m concurrent with the entry into force of the Sparks Segment. Source: SIX are necessary for the participation of SMEs, banks and investors in a function- ing Swiss public SME capital market. Reiew and outloo Like most European exchange operators, SIX Swiss Exchange also introduced a stock segment for rapidly growing companies at the end of the 1990s. In contrast to other ex- changes, SIX Swiss Exchange discontinued this segment in 2002 after the bursting of the dot-com bubble. Foreign SME Growth Markets are still in operation today, which confirms the validity of such market places. Today, Switzerland has sufficient scale to support a properly functioning public SME capital market. SIX Swiss Exchange estimates that around 200 (rapidly growing) Swiss SMEs could look for equity capital on public markets in the next five to ten years. The increase in private investments through venture capital and private equity in the last decade is without a doubt one of the main drivers of this recent develop- ment. And sooner or later, such SMEs financed through private investments look for a “liquidity event”, meaning the sale to a new owner or a listing on an exchange. Such companies also look for solutions to make the shares of both investors and employees tradable. losing thoughts In a time during which the social role of financial institutions is constantly scruti- nised by politicians and the public eye, a Swiss SME stock exchange offers a unique opportunity. SMEs are seen as the social and economic backbone of our society and economy – and their efficient access to capital is therefore of great importance. Fur- thermore, a dedicated SME stock segment Today, Switzerland has sufficient scale to support a properly functioning public SME capital market. also represents a business opportunity for various market participants (banks, law firms, accounting and consultancy firms). Last but not least, an SME stock segment also supports equality by opening the doors to these type of assets for a larger part of the population. You can find more information about Sparks on the Sparks website: www.six- ■ group.com/sparks. Special apital aret Switerland 2021 15

IPO nto the capital maret spotlight with digital strateg How companies are mastering IPOs with automated processes Stock markets at record highs and a recovering global economy offer fertile ground for successful IPOs – this is no different on the SIX Swiss Exchange than in Frankfurt or on Wall Street. In Switzerland, no fewer than three companies ventured onto the trading floor between April and the end of June, after not a single IPO in the previous five quarters. To take advantage of the favourable market environment, stock market aspirants should set the course early on – with a digital strategy that reliably masters regulatory and organisational hurdles through automated processes. dric aumgartner I t’s a popular scene for photographers on the first day of trading: the board of man- agement rings the stock exchange bell at the start of trading – thus ushering in a new era for its company. When the first share pric- es rattle across the ticker, the company has finally arrived on the stock exchange. Like the opening night of a play, the spotlight of the capital market now reveals whether everyone involved has done their homework. After all, the months of prep- aration behind closed doors do not just involve mandating lawyers, underwriting banks and auditors: processes and struc- tures also have to be created to meet the new opportunities and obligations. This includes the balancing act between regula- tory requirements and transparent com- munication, not just with employees and the local and specialist media, as has been the case until now, but also with analysts, investors and the financial media as well. irst comes obligation Good news first: this process can now be mostly automated. Digital, cloud-based platforms display the workflows reliably so that SIX Swiss Exchange’s ad hoc publicity and international publication obligations regarding insider information can be ful- filled in an uncomplicated and legally secure manner. With a disclosure module, several pro- cesses can be triggered simultaneously with just a few clicks of the mouse – the company thus not only achieves the legally required reach via electronic information systems (including information S Q E © : n o i t a r t s u l l I website is thus the first point of contact for investors, analysts and financial journalists in the procurement of information. As part U E UR Cédric Baumgartner is Managing Director of EQS Group Switzerland and has overall responsibility for Investor Relations and Compliance in Switzerland. Prior to that, he managed digital projects in corporate and capital market communications at the Geberit Group for several years. Bloomberg, Reuters, Telekurs) and news- papers, but is also transmitted directly to various financial terminals, news tickers and editorial systems via interfaces and simultaneously played out to the company’s social media channels. Via the connected contact management and mailing tool, the company’s own distri- bution lists with analysts, investors, jour- nalists and other interested parties who have registered via the contact form on the IR website can also be informed promptly by push notification – and all this with only minimal additional work for the IR team. R website a compans business card As for the IR website, this is where announce- ments are automatically integrated and are then available for at least two years, as legally required. The IR area of a company 1 Special apital aret Switerland 2021

Capital. Market. Partnership. (E-)MAGAZINE – ONLINE – EVENT – NETWORK A strong capital market is the key to economic growth and innovation. We are a strong network. We stand for equity culture and retirement provision through shares. We stand for a vivacious , cosmopolitan, growing capital market. We make contributions to facilitate more IPOs and listings. With focus on the DACH region (Germany, Austria, Switzerland), and we always keep an eye on the globalised world. September 2021 – 12,50 EUR (D) – www.goingpublic.de 2021 Pflichtblatt an allen deutschen Wertpapierbörsen Das Kapitalmarktmagazin GoingPublic Magazin Börse–Finanzierung–Wachstum Special Capital Market Switzerland (Vol. ) With supplement nsurance 2021 (48 pages, Vol. 4) SMEs in focus The new stock segment “Sparks” Digital Reporting Digital Reporting “Online-first” soon standard? New stock corporation law The capital band and its advantages Capital Market Partners 2021 Capital Market Partners online: www.goingpublic.de/kapitalmarktpartner

IPO of a digital strategy, an IR website is one of the minimum requirements for companies planning an IPO, along with a platform for the efficient fulfilment of obligations. This needs to be done before the IPO, because the rules of the capital market apply to the companies with an “intention to float” (the declaration of intent for the IPO). At this early stage, the first publications such as the IPO prospectus are already in the pipeline. Even if this is not intended for everyone (regulations often prohibit access from some countries) and therefore a dis- claimer must be placed upstream, care should be taken to ensure that visitors feel they are in good hands, can find the infor- mation quickly and access it as easily as possible. High recognition value can be achieved by designing the IR area along the lines of the company’s corporate design and branding. ttractiel interactie What else is important for an IR website so that it leaves a lasting impression as a com- pany’s business card? As the core of inves- tor communication, it must be convincing through meaningful content and timeli- ness. Share prices, key figures, facts and annual reports are crucial. But it should also evoke emotions, because this is what makes information stick in the memory. Therefore, the goal is to offer attractive content that appeals to visitors and deliv- ers real added value. The digital world offers a wide range of possibilities here – starting with an informative financial calendar including a filter function, inter- active elements such as stock charts with news integration, yield calculators and key Moving into the virtual world, which can also be organised at short notice and on a daily basis, pays off for companies. figure comparisons, through to automated alerts to announce news from the company. However, the user behaviour of stakehold- ers is just as varied as their information needs – a large proportion of access now takes place via mobile devices. This makes a responsive design almost an obligation; the IR website should be as comfortable to access on a tablet or smartphone as a desktop PC. Webcasts meeting in the irtual world In their communication strategies, compa- nies that are preparing for an IPO should also incorporate a realisation from the COVID-19 pandemic: the streaming of finan- cial press or analysts’ conferences is very popular, and the number of participants was in some cases significantly higher than at comparable face-to-face events. This was most likely because it was the only way for companies and their stakeholders to have a direct exchange of ideas consid- ering the restrictions on gatherings. On the other hand, analysts and journalists who would not have travelled to an on-site event also took part in webcasts. To fur- ther increase the reach, companies also frequently used the option of placing an on-demand version of the webcast on their website. Moving into the virtual world, which can also be organised at short notice and on a daily basis, pays off for companies. Webcast transmissions carried out by experienced service providers are signifi- cantly less expensive, particularly for events with a large number of participants and a great deal of organisational effort. Plaing the digital card right out o the gate Investor relations is becoming more pro- fessional, and almost all IR processes can now be designed efficiently. The digital world offers a wide range of opportunities that IR departments of companies that are about to be listed on the stock exchange should take advantage of. There is no way around a digital solution that ensures legally compliant and GDPR-compliant processing, especially when it comes to fulfilling regulatory and informal obliga- tions. The ideal solution is a platform that combines and coordinates reporting obli- gations, investor data, contact manage- ment and news distribution in one tool, like the EQS IR Cockpit. This efficient han- dling of obligations also leaves significantly more time for more freestyle, proactive ■ investor communication. 1 Special apital aret Switerland 2021

Being Public/Investor Relations The latest in sustainability reporting Balancing act between differentiation and consolidation, regulation of varying interests and the role of the capital market The maze of various frameworks and the diverse approaches to and perspectives on sustainability reporting present compa- nies with major challenges. How is this dealt with in practice and what role could the capital market play in standardisation? By Dr Petra Nix T he importance of sustainability has changed fundamentally in the last few years – it used to be a niche topic that was seen by companies as “nice to have” and as a marketing tool at best. There are still companies for whom corpo- rate social responsibility (CSR) activities fall under sponsoring and charity. But the longer publicly traded companies avoid seriously considering sustainability, the more difficult things become. With the shift from a shareholder approach to a stakeholder approach, a company’s success is no longer only mea- sured by its financial figures and sharehol- der return. Stakeholder engagement is particularly anchored in sustainability management and is becoming strategically important for companies. The function of corporate reporting is also changing based on its intended readership. In the past, reporting was mainly a matter of providing an account to shareholders, analysts and regulators; today, however, customers, business partners, (potential) employees and NGOs are also looking for specific information – especially non-financial – in annual reports. Yet interest in sustainability is also cons- tantly increasing on the capital market. Sus- tainable investment has, in part, become mainstream, with trading volumes climbing from one record to the next. Environmental, social & governance (ESG) ratings receive a great deal of attention in the financial community, and can even be a factor in credit negotiations and can lead to more favourable conditions by reducing risk.1 Sustainability does not come at the expense of business performance or profi- tability; on the contrary. ESG is increasin- gly seen as an investment case. This per- spective also explains the growing interest in integrated reporting, which demonstra- tes how value is created holistically and how financial and non-financial capital are interwoven. Sustainability activities there- fore have a direct business impact. On the other hand, there are also trade-offs: for example, at first glance, measures to incre- ase sustainability performance represent an investment. Sustainability must therefo- re be viewed from a long-term perspective rather than maximising short-term profits. More and more investors are taking ESG criteria into account when making invest- ment decisions and are requesting rele- vant information. Since 2019, BlackRock and State Street Global Advisors, two of the world’s largest asset managers, have required SASB-compliant reports as well as disclosures on climate risks in line with TCFD recommendations. In the context of shareholder activism, investors are trying to influence sustainable corporate practi- ces and improve management of ESG issu- es. Maze of frameworks, standards and regulations If a company has decided to report on sus- tainability, it must decide on its preferred set of rules. Acronyms like GRI, IIRC, CDP, CDSB, SASB, TCFD, UNGC and SDG2 repre- sent the competition. Most companies still decide to apply the GRI Standards, while some apply a combination of various frameworks (see Givaudan case study). The question arises as to how the various frameworks relate to each other and whether they don’t ulti- mately all aim to achieve the same thing. 20 Special “Capital Market Switzerland 2021” 1 There are numerous studies on the influence of sustain- ability on capital costs, share price volatility and share- holder return, e.g. Kumar, Ashwin N.C. et al., “ESG factors and risk-adjusted performance: a new quantita- tive model”, 2016. 2 Global Reporting Initiative (GRI), International Integrated Reporting Council (IIRC), Carbon Disclosure Project (CDP), Climate Disclosure Standards Board (CDSB), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), United Nations Global Compact (UNGC), Sustainable Development Goals (SDG). ABOUT THE AUTHOR Dr Petra Nix is the owner and managing partner of PETRANIX AG. She has over 30 years of experience in financial and cor- porate communication. She headed the IR departments of Wella and VIAG (now E.ON) and has years of experience in the banking industry (e.g. Vontobel, Julius Bär). Special thanks to Givaudan SA for their case study contribution and to Dr Rosemarie Weigt for her review and input.

Being Public/Investor Relations There seems to be an urgent need for har- monisation and consolidation. Investors in particular demand uniform sustainability repor ting so that data is comparable and reliable. Alignment documents and statements of intent to work together for standardisa- tion already exist; for example between CDP, CDSB, GRI, IIRC and SASB. In June 2021, the IIRC and SASB merged into the Value Reporting Foundation. However, their reporting frameworks remain separa- te as complementary tools with different objectives. Whether the reporting guide- lines will actually be consolidated is still an open question. Ultimately, the self-inte- rests of the individual organisations proba- bly also play a role. Though the merger of IIRC and SASB points the way in this res- pect, it doesn’t change anything for the report’s user. However, the standard- setters seem to have at least agreed that the four-part structure of the TCFD Recom- mendations (Governance, Strategy, Risk Management, Metrics and Targets) provi- des a useful basis for a universal sustain- ability standard.3 Following a recent con- sultation period, the IFRS Foundation also decided to create an International Sustain- ability Standards Board (ISSB), analogous to the International Accounting Standards Board (IASB), as a standard-setter for uni- form sustainability reporting from the investor’s perspective. Moreover, legislators are not remaining idle. In Switzerland, the plan is for the counter-proposal to the Responsible Busi- ness Initiative, based on the EU’s Non- Financial Reporting Directive (NFRD, Directive 2014/95/EU), to come into force on 1 January 2022. Accordingly, after a one- year transition period starting in financial year 2023, companies in the public interest or above a certain size would have to sub- mit a report on non-financial matters and comply with due diligence and transparency requirements regarding minerals and metals from conflict areas and child labour in the supply chain. The Swiss government 3 In December 2020, CDP, CDSB, GRI, IIRC and SASB published “Reporting on enterprise value. Illustrated with a prototype climate-related financial disclosure standard”, based on the TCFD framework. Fig. 1: Different materiality perspectives Enterprise Value Creation Sustainable Development STATE OF THE WORLD OPPORTUNITIES RISKS NEGATIVE OUTCOMES POSITIVE OUTCOMES INVESTORS DOUBLE MATERIALITY Source: PETRANIX AG, adapted from UN PRI, INVESTING WITH SDG OUTCOMES: A FIVE-PART FRAMEWORK, page 9; https://www.unpri.org/download?ac=10795 of also voiced its official support of the TCFD at the beginning of 2021 and commissioned the development corresponding reporting requirements. Since 1 July 2021, the Swiss Financial Market Supervisory Authority (FINMA) has required large banks and insurance companies (super- visory categories 1 and 2) to provide infor- mation on climate risks based on the TCFD. Meanwhile, the European Commission has already gone one step further. The NFRD is currently being revised to create a more comprehensive Corporate Sustain- ability Reporting Directive (CSRD). This is to include detailed reporting require- ments and will require external auditing in order to give non-financial reporting the same status as financial reporting. It is expected that the new regulation will apply beginning with the 2023 reports and that it will also be relevant for Swiss com- panies with subsidiaries in the EU. Swit- zerland will most likely also align with the EU regulation, with some delay. With increasing mandatory regulation of sustain- ability reporting, the pressure for standardi- sation is increasing. Dierent perspecties and double materialit as a solution We remain sceptical when it comes to the harmonisation of sustainability reporting frameworks, at least for the time being. Apart from the competition between the standard-setters, the core issue is that different perspectives on materiality exist (cf. figure 1). One side represents a capital market-oriented investor perspective. Material sustainability issues here are those that have an impact on the company, especially in financial terms or with regard to risk consideration (enterprise value creation perspective). On the other side, the focus is on the external impact of the company on the environment, the economy and society (sustainable deve- lopment perspec tive). If both perspec- tives are considered, this can be referred to as double materiality. While the two perspectives are comple- mentary – like two sides of the same coin – this also means that a fusion of different standards with different perspectives can Special apital aret Switerland 2021 21

Being Public/Investor Relations only succeed if both sides are taken into account. The GRI, for example, welcomes the efforts of the Value Creation Foundation, but makes it clear that its investor focus falls short. At first glance, it would be more effici- ent from a capital market perspective to opt for a standard such as SASB, which aims to provide the information relevant to investors with as little effort as possible. But it is worthwhile to be proactive and to take a broader perspective, not only in view of possible regulatory developments – the EU explicitly advocates the double materiality approach. Even from a purely risk-oriented perspective, it makes sense for companies and investors to take an outside view and to take broad stakehol- der perspectives into account. After all, sustainable development is relevant to business – on the one hand, as a risk (e.g. costs in the form of carbon pricing); on the other, as an opportunity (e.g. through the sale of solar panels). There is close interac- tion between the capital market and the outside world (cf. figure 1). The capital market can play an important role in this regard and can exert pressure in favour of double materiality reporting. Taking clima- te change as an example, this would mean reporting on both the financial impacts and risks of climate change for the compa- ny (TCFD perspective) and on the company’s impact on climate change (GRI perspective). This would bring the desired harmonisation and consolidation of the frameworks within reach. In this light, im- pact investing is likely to become even ■ more important in the future. Case study: Givaudan Givaudan, the leading global supplier of flavours and fragrances located in Vernier, Switzerland, recognised the significance of sustainability for its business model very early on. To ensure the quality and reliability of information, they implemen- ted a comprehensive external audit which included the supply chain. Givaudan star- ted their “journey towards integrated reporting” in 2016. The first step aimed at formally integrating sustainability topics Fig. 2: 2020 Givaudan reporting suite from the sustainability report into the annual report and reducing redundancies between the publications. Eventually, the reporting suite (cf. figure 2) was viewed as a whole, and better coordinated. The com- pany moved forward by addressing the fundamental concepts of integrated reporting: integrated thinking and cross- functional collaboration were strongly promoted and the topic of sustainability shared across all levels, up to the Executive Committee and Board of Direc- tors. Since introducing its newly defined purpose in 2019 at the latest, sustainability has definitely become an integral part of all business activities. The strategy for 2025 is also designed with this in mind. The company consis tently pursues a dou- ble materiality approach: the importance of sustainability for the company’s suc- cess and its impact on the environment, people and society are all considered. This is also reflected in the company’s commitment to the 1.5° climate target and its ambition to become a certified B Corp4. In the long-term remuneration compo- nents (performance share plan), financial targets were supplemented by environ- mental and social sustain ability criteria in early 2021. Reporting is mainly based on the <IR> Framework and the GRI Stan- dards, but also points out the company’s contributions to the SDGs and the UNGC Principles. In the future, this will be sup- plemented with SASB and TCFD mapping to make any implicit information explicitly clear and to further emphasise the holis- tic nature of the reporting approach. This means the company is well-prepared to continue managing the balancing act bet- ween different frameworks and stake- ■ holders in the future. Far from being a burden, there’s a clear financial and commercial advan- tage to being sustainable – allowing us to ensure our continued market position and staying relevant to customers and consumers in the future. By doing good we will do well. Tom Hallam, CFO Givaudan Source: www.givaudan.com 4 See https://bcorporation.net. 22 Special “Capital Market Switzerland 2021”

Pﬂichtblatt an allen deutschen ertpapierbörsen Magazin Magazin Capital Market Switzerland September 2022 – 12,50 EUR (D) – www.goingpublic.de 2022 Pflichtblatt an allen deutschen Wertpapierbörsen GoingPublic Magazin Börse–Finanzierung–Wachstum Das Kapitalmarktmagazin 2016 Pﬂ ichtblatt an allen deutschen Wertpapierbörsen Pﬂ ichtblatt an allen deutschen Wertpapierbörsen Pﬂ 2017 Pﬂichtblatt an allen deutschen ertpapierbörsen 2018 Pﬂichtblatt an allen deutschen ertpapierbörsen Magazin Magazin Magazin Magazin Magazin Magazin Anniversary Issue Not (quite) on the Stock Market alue Stocks with na alue Stocks with na tural Dividends, Free Passes & Bissfestes Familienunter Dental Specialist Straumann has been Satisfying Customers for over 40 Special Capital Market Switzerland (Vol. 10) Regulatory Corset or Opportunity? Dividends’ Eldorado e’s no place like home There’s no place like home e’ 2019 Pﬂichtblatt an allen deutschen ertpapierbörsen 2020 Pﬂichtblatt an allen deutschen ertpapierbörsen 2021 Pflichtblatt an allen deutschen Wertpapierbörsen Magazin Magazin Magazin Magazin With supplement „M&A Insurance 2020“ (48 pages, Vol. 3) Magazin Magazin Börse–Finanzierung–Wachstum Model for the future? Model for the future? Model for the futur It doesn’t work without CSR t work without CSR Safe Haven Switzerland Retreading Fit for the IPO Retreading Signiﬁcance of suistainable invest- cance of suistainable invest- Swiss issuers talk about the qualities Swiss issuers talk about the qualities Weathering Corona and Playing The new Swiss Preparation for Reporting and ments is growing continuously ments is growing continuously of their domestic stock exchange of their domestic stock exchange out Economic Strengths Prospectus Regime Transparency after Going Public With supplement nsurance 2021 (48 pages, Vol. 4) nsurance 2022 With supplement (48 pages, Vol. 5) 2022 Preview 10 years “Capital Market Switzerland“

Being Public/Investor Relations n ie ears, eer compan will publish their reports online irst Interview with Gert Schröder, CEO, NeidhartSchön AG Digital reporting has been on the rise since at least the coronavirus pandemic. In Switzerland, this trend is much more pronounced than in Germany. In this interview, Gert Schröder, CEO of NeidhartSchön AG, explains the advantages of the HTML format and why PDFs are nonetheless not obsolete. GoingPublic: What role does online reporting play in Switzerland? Schröder: Digitalisation has been the driving force behind corporate communication for 15 years, and the decisive boost was created by the coronavirus pandemic. In Switzer- land, we see a clear development: away from the classic print format and towards digital publication platforms. However, the format of these digital versions varies greatly from one company to the next and is oriented to the targets set by the individual firms as well as the demands of stakeholders. Can this trend be backed by numbers? We estimate that approximately one-third of all companies have already adopted an on- line-first approach – and the number is incre- asing. By the same token, no company can get by any more without online communication. Though the classic PDF format is still in great demand, it is increasingly seen as supplemen- tary to the primary online publication. The nline Report – 2021 Perspecties is an ana- lysis of digital reporting in the top 100 DAX and SMI companies. The key findings will be presented exclusively at the Reporting Perspecties rends – Dialogue – etwor event on 29 September 2021, httpswww.corporatereporting.com eentreportingperspetien2102S SRP. Following the presentation, the study report will be accessible online at: onlinereporting.org And will the digitalisation boost conti- nue after the pandemic? The coronavirus was merely the catalyst. The digitalisation trend in the area of reporting will continue. Companies will establish new processes; the “online-first” approach will continue to prevail in Switzer- land. We expect that, in five years, every lis- ted Swiss company will publish their annual reports online first. On the other hand, printed reports are becoming obsolete. Printed reports are decreasing in number and could disappear completely in the future. This is due in part to companies’ increased sustainability awareness. It would be cont- radictory for companies to want to shape their business model sustainably and at the same time print a large number of 250- page reports. Does “online first” mean that a PDF or print version will continue to exist – a hybrid format? The development is heading towards HTML formats with individual microsites. With the help of a web publication, content can be collected centrally and distributed a second or third time through various channels: on the website, in social media or in a company’s own corporate blog. Due to this online orientation, videos are increasingly being incorporated, and interviews with the management or the Board of Directors deliberately include motion. But PDFs will remain important and are established because many sharehol- ders appreciate the format. Analysts, journalists and investors like to use the full-text search function, are familiar with the layout, and have grown to like its clear structure. PDFs will certainly stay with us. They provide not only comments and links but many advantages compared to websites, which do not always lead the user to the desired content quickly and clearly. U E ERVEWEE Gert Schröder is CEO of NeidhartSchön in Zürich since 2018. The agency with 40 specialists in communication focuses on the conception and realisation of annual reports and ESG reports. Customers are listed companies and organisations in Switzerland. After a commercial educa- tion, Schröder did a classic career in con- sultancy. He worked for several national and international communication agencies and also worked on the customer side as head of marketing and communica- tion. After his master in communications management, he put his focus on digital companies and stakeholder communica- tion. 2 Special apital aret Switerland 2021

Being Public/Investor Relations Speaking of sustainability, has the subject now made it into reports? Sustainability and ESG criteria have long been more than mere greenwashing and empty promises to engage in this area. Sus- tainability reporting has become evidence based on recognised standards and requi- rements. It is no longer enough to simply report financial indicators. Non-financial assets must also be moved to the forefront in order to meet the demands of the various stakeholders. investors, banks and talents expect that companies are commit- ted and that they permit a look into their processes to create transparency. With good sustainability reporting, their activi- ties are quantifiable and their serious intent and ambition become visible. For example, In terms of digital reporting, Germany has not come as far as Switzerland. Why is this? Switzerland has a different basic approach to the topic of digitalisation as well as to technical improvements and options. Digital possibilities are seen as opportunities. Swiss companies have long been careful to make their digital applications as user- friendly as possible, e.g. with a decent versi- on for tablets or smartphones. Aside from PDFs, an increasing number of online reports P S N © : o t o h P that are of equal if not greater value are cropping up in HTML format. We find that the approach is somewhat different in Germany. There, the motto “never change your winning horse” applies instead. PDFs are well-established, and the entire readership is familiar with the format. The changeover from this well-functioning model is a bit more hesitant. Yet it’s also clear that there is no right or wrong in this context. Different compa- nies have different requirements and work in different sectors and industries. The focus is always on optimal presentation of the individual topics. There is no one-size-fits-all solution, which is what makes it interesting. Mr Schröder, many thanks for the informative discussion. ■฀ The interview was conducted by Isabella-Alessa Bauer. EE Building Relationship banking for the capital markets. TRUST. BankM AG Mainzer Landstrasse 61 D - 60329 Frankfurt am Main www.bankm.de Contact: Dirk Blumhoff / Ralf Hellfritsch T +49 (0)69-71 91 838-10 info@bankm.de

Being Public/Investor Relations “orona has made communicating across countries een more challenging Interview with Nina Zolezzi, CEO, EnglishBusiness AG “Intercultural competence has become more important than ever now that we speak to each other on camera”, explains Nina Zolezzi from the cross-cultural communication services provider EnglishBusiness about the impacts of COVID-19 on communication in the global workplace. m o c . e b o d a . k c o t s – c o d h t a p © : o t o h P GoingPublic: Ms Zolezzi, for our readers who might not yet be familiar with EnglishBusiness, your claim is “we expand your global reach”. What does that mean and why is that relevant in Switzerland? Zolezzi: Our purpose is to empower peo- ple to cooperate and collaborate across cul- tures and languages. An important aspect of communication for companies that are growing inter- nationally is the establishment of clear, consistent language that reflects a single recognisable and convincing identity across the globe. We support our custom- ers in achieving this with our linguistic expertise, by training communication skills and by building cultural competence. Practically, this means we translate, build terminology databases, and teach people to speak, negotiate and present to multi-cultural stakeholders across the globe. We also design team-building and in- tercultural awareness experiences for teams which have been formed from cross-cultural mergers and acquisitions. This has been especially challenging during the coronavirus crisis as people have stopped seeing each other in person. Switzerland is a magnificent use case for cross-cultural and multilingual communi- cation. No other European country actively translates and works across cultural and language barriers to the same extent. You say team-building and intercultural awareness are increasingly important – what exactly do you mean? How relevant are these skills today? Intercultural awareness and cross-cultural communication have always been a focus of EnglishBusiness, as good communica- tion is the basis for strong collaboration and efficient teams. But now they are more 2 Special apital aret Switerland 2021 U E ERVEWEE Nina Zolezzi is the CEO and co-founder of EnglishBusiness AG. As a communication consultant, she is dedicated to inspiring leaders to develop a global mindset and to providing people with the skills and tools they need to thrive in international business contexts. She is a qualified systemic psychologist and an expert in cross-cultural awareness. As a public speaker, she focuses on the power of culture and the importance of language in human interaction, creativity and collaboration.

Being Public/Investor Relations relevant than ever! Not only are we seeing increasingly remote teams; colleagues and clients can be located anywhere in the world, adding complexity to our interactions. For us, “cross-cultural” doesn’t just mean “cross-national” – even within one area, teams are multi-cultural. Our cultural pref- erences and the way we behave are shaped by various influences. Developing cross- cultural expertise is about these subtle but important differences. Teams are dynamic, people are complex, and successful com- munication is lifelong work! You mention new complexities in inter- actions caused by the coronavirus crisis. What specifically do you have in mind? Do employees need new skills? People have rapidly become familiar with remote working scenarios and virtual meetings over the last 18 months. This new work comes with other limitations and challenges that are still largely going unnoticed. The objective of good communication is surely to avoid misunderstandings, to mini- mise conflict as well as to maximise creativity, cooperation and collaboration. Before the pandemic, this meant focussing on learn- ing a common language, and combining this skill with awareness and mindfulness of the cultural assumptions of the people you worked with. This awareness allowed an individual, for example, to know not to take offence if a person from a higher-con- text culture spoke to their boss before speak- ing to them, or turned up late for a meeting. Understood culturally, these seemingly offensive behaviours need not be offensive, and knowing this makes working together productive, effective and more pleasurable. What many aren’t seeing is that up to 55% of the messages we receive are delivered via non-verbal signals. Research by Prof. Mehrabian, Professor Emeritus of Psychol- ogy at the University of California, revealed that the most significant aspect affecting the credibility of communicated messages is the consistency or inconsistency of the visual, audio and factual signals being sent. Credi- bility is highest (i.e. the message was believed by most of the test candidates) when all the signals are consistent. The concept of credibility is not new; Aristotle understood it over two thousand years ago and called it “pathos”. Now that we are often just a “face on a screen” – no hands, arms, posture to read – we are starved of much of the largely sub- conscious data we processed. Especially cultures that use large gestures (think Italians) have lost part of their “voice” and listeners have (often unknowingly) lost half of the data they need to understand the other person. The result is a wealth of new potential misunderstandings. And what can we do about this? What humans do best: adapt and learn. This means learning cross-cultural com- petence actively and taking topics like managing technology and your virtual meeting space or body language training for digital meetings into the classroom. Did COVID-19 impact the learning landscape itself? It is obvious that COVID-19 accelerated the move to virtual solutions. However, the true fallout won’t be known until the pandemic is over. I believe up to 60% of training will remain virtual. The surge in relatively successful e-learning services shows that such solutions are popular, especially for their flexibility and variety. I think there are very few negative sides to this – more access to learning can only be a good thing! However, some training – especially intercultural or soft skills – will always be preferable in person and will return when it’s safe. What many aren’t seeing is that up to 55% of the messages we receive are delivered via non-verbal signals. Switzerland enjoys a reputation for internationality and is linguistically diverse; after all, there are four national languages. Do you see any special impacts here? As you say, Switzerland is very intercultur- al and there are also differences between the cantons. Cultural diversity, however, is becoming the norm in international businesses and the nationality paradigm for understanding culture is proving limit- ed and restrictive. Today, people with multiple passports and a diverse heritage are ubiquitous. Elon Musk holds three passports, was educated in South Africa and now lives in the US. Kamala Harris’ parents came to the US from India and Jamaica. The list goes on, and it is appar- ent that people are increasingly stepping beyond national boundaries to educate themselves, collaborate, and achieve success. A common language for international operating teams, such as English, is a good starting point. EnglishBusiness has helped many companies improve their communi- cation. It often starts with English courses – but a common language is not enough, as it doesn’t safeguard against misunderstand- ings, especially when it comes to cultural misunderstandings within the teams! How does building cross-cultural awareness work? Cultural awareness is not an academic pursuit. Reading, hearing and learning about the expectations and assumptions of the cultures you encounter in your work helps, but learning requires immer- sive experiences. To fast-track this, we create learning experiences. One of these is a cross-cultural simulation where two groups learn fictive languages and sets of values. After studying and exploring the behaviour of the other group, they play, clash and interact – which is both wildly entertaining and immensely insightful. Making cultural mistakes in this safe space allows people to feel what it means to be an outsider or an insider and prac- tice strategies to navigate this successfully. It’s only once you feel it that you really internalise it. If you could give us just one invaluable tip, what would you choose? Be genuinely curious about others. Curiosity is about interest and connection. When humans are interested and connected, they tend to make the right choices. Ms Zolezzi, thanks for the good talk. ■ The interview was conducted by Isabella-Alessa Bauer. Special apital aret Switerland 2021 2

Being Public/Investor Relations What does inestor relations hae to do with sustainabilit Sustainability at the heart of Investor Engagement Investor interest in companies’ exposure to and management of sustainability issues is broadening, deepening and starting to impact company valuations. However, many corporate teams do not yet feel equipped to communicate meaningfully and efficiently with investors on sustainability issues. This creates an opportunity to develop the understanding and ability of IR managers to lead their firm’s sustainable communications with financial markets. oss antram gap at the inestor interace Through our work with the World Business Council for Sustainable Development’s (WBCSD’s) member companies and enga- gement with investors, we find that there can often be a gulf of mutual misunderstan- ding as to the priority that should be given to sustainability information within inves- tor conversations. This can be broadly characterized on the company side as “investors don’t consistently ask us about ESG, or if they do, they are most likely to be specialist ESG or responsible investors” and from investors: “We need companies U E UR Joss Tantram is a Director of WBCSD’s Redefining Value program, dedicated to developing approaches to align finance, business and the delivery of a sustain- able future. He leads the program’s work to embed sustainability within Investor Relations, and WBCSD’s collaboration with the PRI. He is also supporting WBCSD’s members in defining what Stakeholder Capitalism means for business m o c . e b o d a . k c o t s – g n o p a n n h C © i : o t o h P mal sustainability or integrated reports or reflected within the assessments of sustain ability ratings organizations. How- ever, there is also a growing trend which focuses on the investor interface – how company IR professionals talk (or do not talk) to investors about sustainability. This is an essential area for evolution of practice. Put simply, if sustainability does not feature consistently within communication to investors of all types, they are unlikely to see it as a strategic corporate priority, and therefore unlikely to adequately recog- nize and reward companies for their ambi- tion, approach, and performance. If sustainability is of strategic impor- tance to the company, it is of strategic importance to IR. To date, the most significant elements of corporate disclosure of sustain- ability (or environmental, social and governance/ESG) issues to investors have tended to take the form of sections within annual reports and accounts, within for- For further topics pertaining to investor rela- tions, please check out the knowledge hub of our partner organization www.irclub.ch celebrating its 30th anniversary in 2022. 2 Special apital aret Switerland 2021

Being Public/Investor Relations to tell us which ESG issues are material to their business and therefore about their approaches and performance.” It is increasingly obvious that not only are sustainability issues material to com- pany performance, but also that compa- nies which take a proactive approach to informing and educating investors will be those that are being assessed and valued accordingly. For instance, WBCSD’s research on its members’ stock market performance throughout the pandemic has shown that those companies which demonstrate taking ESG into account beat the major stock exchange benchmarks. factors ridging the gap – building condence about sustainabilit and alue Despite a building evidence base, we find that there remains a lack of confidence in many companies in understanding how their sustainability efforts can be trans- lated and communicated to match the inte- rests of investors. We believe that the techniques and approaches for effective sustainable value conversations already exist within IR, but what is frequently missing is the confi- dence to see just how and why sustainabi- lity should be integrated. Bridging the gap between investors and companies requires sustainability profes- sionals and their colleagues in IR to under- stand how their approaches to sustain- ability relate to overall enterprise value creation – of interest to any investor, whe- ther they have an ESG or a “mainstream” focus. Strategic, materiality focussed corporate sustainability is about value creation, not just value protection. Companies have the opportunity to take a more active role in communicating to investors how their approaches to sustainability not only deli- ver direct capital efficiency, risk reduction, and reputation benefits, but also drive new market development, revenue growth, and resilience. This will help shift company- investor conversations about sustainabili- ty from being predominantly risk-orienta- ted to a wider risk and opportunity focus. Eectie integration or sustainable transition WBCSD believes that there is a need for all businesses to understand and undertake sustainable transition to deliver the UN SDGs and drive change towards a future as defined by WBCSD’s Vision 2050 Refresh. As the expectations and requirements for sustainable performance builds, so does the need for companies to identify and articulate their strategic responses to material sustainability opportunities and challenges. In order for their strategies to be successful, they also need to build the understanding and support of their inves- tors. Sustainable Investor Relations drives sustainable enterprise. In some areas, this is becoming clearer and more appreciated by both companies and investors, particularly in sectors that are undergoing transition along carbon reduction pathways – where there is little or no distinction between a sustainability aspect of a strategy and corporate strategy itself. Over time, we seek to develop the com- fort and confidence of companies in all sectors to understand just how sustainabi- lity performance and prospects can be related to the sorts of questions and mea- sures that mainstream investors have. ools, guidance and insight or sustainable R Through the support of the Gordon and Betty Moore Foundation, WBCSD has initi- ated the “Building Bridges” project in collaboration with SRI-Connect, designed to provide insight and practical support for the development of sustainable IR. Photo: © Tasha Vector –stock.adobe.com Centered around a free, easily accessible and practical website, www.sustainable-IR. com, we are bringing together guidance, resources, case studies, and support for sustainability professionals to understand IR, for IR professionals to understand ESG, and for them both to work together to engage effectively and consistently with investors. WBCSD believes that businesses that take a strategic and integrated approach to sustainability will not only be the ones to respond to and solve society’s problems but will also be the most resilient and capable of thriving over the long term. De- veloping the extent and consistency of how companies communicate ESG through formal disclosure and also through IR, is a key part of this shift to put sustainability at the core of corporate purpose and perfor- ■ mance. Originally published in: The Reporting Times #18/2021 reporting-times.com Special apital aret Switerland 2021 2

Service m o c . e b o d a . k c o t s – l l i m e e f f o c © : o t o h P Partner Portraits EnglishBusiness is a boutique consultancy of communication experts, translators and trainers based in Hamburg, Germany. For nearly 25 years we have offered our clients the skills and services they need to expand their global reach. ontact Nina Zolezzi is your contact for communication and language training: training@englishbusinness.de Our portfolio of solutions includes translating corporate communi- cation across all leading languages, localising messages to suit inter national and cross-cultural audiences in various geographies, building powerful cross-cultural teams that leverage their diffe- rences as strengths, and teaching people the language and com- munication skills they need to speak, convince, lead and inspire colleagues and clients across the globe. Our mission is to enable each of our clients to speak in a con- vincing, authentic, single voice across their entire organisation. We achieve this by empowering our clients’ people with training, and supporting their communication efforts with expert trans- lations and terminology. Marlen Schrader will answer all questions on translations and proofreading: translation@englishbusiness.de EnglishBusiness AG Zeughausmarkt 33 20459 Hamburg Tel.: +49 40 6505 253 www.englishbusiness.de 0 Special apital aret Switerland 2021

Service EQS Group is a leading international RegTech provider operating in the fields of Corporate Compliance and Investor Relations. EQS Group’s products are pooled in the cloud-based software EQS COCKPIT. They ensure the professional control of compliance workflows in the fields of whistleblower protection and case management, policy management, insider list management and disclosure obligations. Listed companies also use a wide range of digital investor relations services. These include a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications. The company was founded in 2000 in Munich, Germany. Today the group employs more than 500 professionals and has offices in the world’s key financial markets. In Switzerland, EQS Group is repre- sented in the city of Zurich with around 25 employees. ontact Cédric Baumgartner, Managing Director cedric.baumgartner@eqs.com Tel.: +41 41 520 01 41 EQS Group AG Hardturmstrasse 11 CH-8005 Zurich www.eqs.com MLL is your leading law firm in Switzerland. After our merger with Froriep which we completed as of 1 July 2021 we support you with 150+ lawyers out of Switzerland (Zurich, Geneva, Zug and Lausanne) and through our international offices in London and Madrid. Capital Markets Expertise As a recognized representative of the SIX Swiss Exchange MLL advises banks, issuers and investors on all capital market trans- actions including capital raising, structured finance, fund formation and related regulatory matters. MLL is also highly specialized in FinTech matters and has become a leading firm in advising clients on ICOs, blockchain and digital transformation. ontact Dr. Wolfgang Müller, MBA Tel.: +41 58 552 05 70 wolfgang.muller@mll-legal.com Dr. Catrina Luchsinger Gähwiler Tel.: +41 58 552 03 80 catrina.luchsinger@mll-legal.com MLL Meyerlustenberger Lachenal Froriep AG Schiffbaustrasse 2, P.O. Box CH-8031 Zurich www.mll-legal.com | www.mll-news.com Special apital aret Switerland 2021 1

Service SIX operates and develops infrastructure services in the Exchanges, Payments and Financial Information business with the aim of raising efficiency, quality and innovative capacity across the entire value chain of the Swiss financial center. In the Exchanges business, SIX offers its customers in Switzerland and around the world a comprehensive range of exchange services from listing, trading and post-trade solutions, from a single source. SIX operates one of the most important European stock exchanges. It offers outstand ing liquidity in trading of Swiss and foreign securities and connects companies from around the world with international investors and trading participants. ontact Valeria Ceccarelli Head Primary Markets Tel.: +41 58 399 2180 valeria.ceccarelli@six-group.com Patrick Förg Head Origination, Primary Markets Tel.: +41 58 399 2153 patrick.foerg@six-group.com SIX Exchanges Pfingstweidstrasse 110 CH-8021 Zurich www.six-group.com Imprint Volume 24, 2021, September, Special „Capital Market S witzerland 2021 Publishing House: GoingPublic Media AG Hofmannstr. 7a, 81379 Munich Phone: +49 89 2000 339-0 Fax: +49 89 2000 339-39 E-Mail: info@goingpublic.de Internet: www.goingpublic.de Editorial: Isabella-Alessa Bauer Picture Editing: Yvonne Neff Photos: Adobe Stock, Company Pictures Cover picture: © coffeemill – stock.adobe.com Authors: Yannic Barth, Marc Baumberger, Cedric Baumgartner, Patrick Förg, Dr. Wolfgang Müller, Dr. Petra Nix, Beat Andreas Schweizer, Martin Utschneider, Dr. Alexander Vogel Interviewees: Gert Schröder, Nina Zolezzi Proofreading: Benjamin Eder Design: Yvonne Neff, Robert Berger Editor’s address: s. Publishing House, Fax: +49 89 2000339-39, E-Mail: redaktion@goingpublic.de Contact Advertisiung Capital Markets Media: Matthias Wohlgemuth, Tel.: 089-2000339-58 E-Mail: wohlgemuth@goingpublic.de price list no. 10 of November 1, 2006 Publication dates 2021: 15.09. (Special „Kapitalmarkt Schweiz“),18.09. (Geschäftsberichte & Trends), 23.10. (Mitarbei- terbeteiligung), 23.10. (Special „Kapitalmarkt Österreich“), 11.12. (Deutsches Eigenkapital- forum / Immobilien mit Kapitalmarktkalender 2022) Distribution: Retail Price 12.50 EUR, Plattform Life Sciences: 12.50 EUR, Special issues 9.80 EUR, annual subscription 148 EUR, annual subscription abroad 160 EUR. All prices incl. shipping costs and 5% VAT. Subscriptions: GoingPublic Media AG GoingPublic Subscription management Hofmannstr. 7a, 81379 Munich Phone: 089-2000339-0, Fax: -39 E-Mail: abo@goingpublic.de Printing: Druckerei Joh. Walch GmbH & Co KG, Augsburg Liability and references: Articles, recom- mendations and tables are based on sources which the editorial team deems reliable. No guarantee can be assumed for their accura- cy, however. The editorial team reserves the right to edit and/or to decline the printing of articles which it receives unprompted. Potential conflicts of interest: Securities of companies named in GoingPublic Magazine may be held by one or more employees of the editorial team and/or contributors at the time of the publication. However, potential nits interest re inte t Reprinting: © 2021 GoingPublic Media AG, Munich. All rights reserved, espe cially those pertaining to translation into foreign lan- guages. The photo-mechanical duplication of this publication or parts thereof is not permitted without the written permission of GoingPublic Media AG. This also includes re- cording in electronic databases, the internet, and duplication on CD-ROM. Data protection: The protection of your data is important to us. The data protection declaration of GoingPublic Media AG applies, also available on our website www.goingpublic.de/datenschutz. ® Registered trademark at the German tent n rer Ofie reg. no. 398 15 475 inli in is n fiil rnl t all German securities exchanges. ISSN 1435-3474, ZKZ 46103 Supplement note: The special „M&A Insurance 2021“, a joint product of GoingPublic Magazin and Unternehmeredition, is attached to the total circulation of this issue. 2 Special apital aret Switerland 2021

Cover

Editorial

Content

Leading Swiss index grows – backlog in IPOs

Where the leading Swiss index is going

The capital band – a new and flexible instrument in Switzerland

Decisive spark

Into the capital market spotlight with digital strategy

The latest in sustainability reporting

“In five years, every company will publish their reports online first”

“Corona has made communicating across countries even more challenging”

What does investor relations have to do with sustainability?

Partner Portraits

Imprint