SIG (AO) | Hold | Signalling progress

Research evidence excerpt

SIG (AO) | Hold | Signalling progress

. The group leverages strong

product utility (fast changeover times, filling of particles, SKU/format flexibility, etc.) and innovative edge (alu-free,

monomaterials, low total cost of ownership, etc.) to find growth.

There is already tangible progress in terms of implementing the measures taken since H2 2025 to reposition the group for lower

capital intensity, clearer business focus, higher overall business efficiency, consistent EBIT margins and lower financial leverage.

The duopoly with Tetra Pak has been highlighted as sustainable and successful. Alternative consumables providers continue to

focus more on the bigger market opportunity, which is the roll-fed system of Tetra Pak, and are less focused on SIG's sleeve-based

system. The business model is additionally shielded by IP and trade secrets.

Admitting various uncertainties, the market outlook is basically unchanged vs management assumptions. Guidance has therefore

been confirmed.

The group is making progress with respect to portfolio management. The chilled business is up for sale, and SIG is in discussion

with several interested parties. Any proceeds will be used for gross debt reduction.

SIG highlights synergies with the former Scholle IPN business, both defensive synergies, but also synergies that help customers to

be successful in different market areas (additional packaging formats to win access to markets beyond food retail). However,

there are parts of the Scholle IPN business (wine bag-in-box solution) for which management is exploring various options,

including disposal, management for efficiency or selling price adjustments.

Scholle IPN has likely not reached the earn-out threshold (6% growth p.a.). There is an ongoing debate with the former owner of