LETTER TO SHAREHOLDERS.

Our performance in 2025 does not reflect the real potential of Tecan, and we are taking measures to future-proof our company and ensure that we realize our potential and perform strongly along market cycles. In 2025, we recorded revenues of CHF 882.5 million, down 1.6% in local currencies compared to 2024, with a lower adjusted EBITDA of CHF 142.1 million. This represents an adjusted EBITDA margin of 16.1% and of 18.1%, excluding foreign exchange effects and the impact from tariffs. The decision to streamline our business and to focus on where we have a strong position and create most value, resulted in the partial impairment of goodwill of CHF 139.5 million and a negative net result of CHF 110.7 million. This has however no effect on our operating cash-flow, which amounted to a healthy CHF 138.0 million. Our company remains in a very solid financial position, and the Board of Directors proposes an unchanged dividend of CHF 3.00. This is an expression of our confidence in Tecan's future and of our commitment to shareholder returns. 2025 was a complex year, particularly impacted by geopolitical factors. Our team acted swiftly to develop and implement mitigation plans. In the case of US tariffs, they were able to reduce the impact by 20%. Further important achievements were the expansion of our Robotic work-cells offering and the establishment of our market presence in India. The way our teams came together under pressure has strengthened the conviction in our capacity to transform and to deliver differentiated performance.

Continued subdued end-markets created funding uncertainty for our customers and impacted our financial performance in 2025. We also recognize that our execution was inconsistent. We are drawing the necessary lessons and are addressing this issue. A strong connection to our customers and flawless execution will help to ensure that we are able to achieve our targets. Despite the performance in 2025, our core is intact and Tecan is financially strong. We have launched “Rewired”, a transformation program to future-proof Tecan, based on three main levers: portfolio optimization, commercial excellence, and operational excellence. We will outline the program in more detail later in this letter. It is our priority to return Tecan to generating profitable growth, while preparing for the next phase of development and growth in our industry. We are confident to realize this opportunity based on our strong platform and benefiting from enhanced commercial and operational execution.

The life sciences and diagnostics industries are at a point of acceleration. We expect them to return to higher growth rates while transformational technology will create secular growth trends. On the back of demographic developments, AI integration and automation imperatives are catalytic forces driving industry growth over the next decade. Scalable, AI- and data-driven automation will be even more essential for the competitiveness of our customers and for value creation across research and clinical settings. Consider what we see today with our biopharma customers: They are using AI models at the beginning of the drug discovery process, generating significantly more output that must be validated in the wet lab, which is where Tecan comes into play. The more potential candidates AI identifies at the beginning, the more validation work is required in the wet lab. And there is a closed loop: as information is verified in the wet lab, it feeds back to refine the AI models. This is why automation is essential, as it is the only way to ensure the consistent, clean data at scale required by these AI models and this new way of developing innovative drugs. The accelerated drive towards automation creates a unique growth opportunity for Tecan, built on three main components:

• Our market leadership in liquid handling and laboratory automation
• Our diversified strategic positioning across expanding markets in life sciences research, diagnostics and medtech
• Technology convergence, where AI and data analytics are reshaping our sector

Tecan is considered the leading provider in the markets where we compete. Our Life Sciences Business occupies a structural sweet spot within the industry, scaling key workflows in life sciences and clinical diagnostics. Our Partnering Business complements this position with a distinctive value proposition that leverages synergies and diversifies revenue streams. Together, the two businesses reinforce and extend each other, expanding Tecan's reach and relevance across the full breadth of healthcare. The unique strength of this synergistic and diversified platform lies in the integration of three mutually reinforcing pillars: Innovation, customer relationships, and global infrastructure. Our innovation engine combines deep expertise in fluidics and robotics with advanced engineering and software development capabilities and expanded manufacturing infrastructure. In 2025, we invested 7.8% of revenues in R&D. Our co-innovation partnerships give us exceptional insight into evolving customer needs. Through our Tecan, Synergence, Cavro, and Paramit brands, we serve customers across the full spectrum, from life science research to diagnostics and medtech, creating a virtuous cycle: proximity to customers drives innovation; innovation deepens partnerships; partnerships generate the data, insights and trust that become the foundation for the next generation of solutions. Our global presence has expanded, strengthening both operational resilience and market access. In manufacturing, we have evolved from concentrated production to a distributed footprint spanning Europe, North America, and Asia, creating geographic diversification and positioning capacity closer to key markets while maintaining consistent quality standards. In end-markets, targeted investments are capturing high-growth opportunities: direct entry into South Korea delivered double-digit growth in 2025, while our 2026 India entry through a hybrid model targets the rapidly growing biopharma sector. Underlying all three pillars is the quality of our people: a global team of subject matter experts who combine deep domain knowledge with an innovation and customer-service mindset. They have earned the trust of some of the world's most demanding customers through decades of collaboration. Based on these capabilities, we help customers to scale healthcare innovation from research through to clinical application, ultimately improving lives and health outcomes worldwide.

To deliver differentiated performance across market cycles, and to capture the opportunity ahead, we have launched a transformation program that will lead us to deliver on our ambition of sales of CHF 1 billion and 20% adjusted EBITDA margin by 2028. We will focus on the following three levers:

1. PORTFOLIO OPTIMIZATION AND INNOVATION:

We will compete where we lead and win. This means strategic choices: focusing R&D investment on platforms with clear differentiation, accelerating time-to-market for high-impact innovations, and pruning offerings that no longer align with our strategic direction. We will enhance R&D productivity through market-driven governance, platform leverage, and resource deployment to our most effective locations. Some of the measures are already being implemented. At Tecan Genomics, we are exiting activities which do not meet our criteria for value creation. We also made the decision to discontinue dedicated design functions acquired in 2021 with Paramit and leverage Tecan’s existing design and development capabilities to complement our contract manufacturing offering. This decision led to an impairment in 2025 in the amount of CHF 139.5 million.

2. COMMERCIAL EXCELLENCE AND AGILITY:

We will sharpen our go-to-market model with clearer customer segmentation, enhanced sales effectiveness, value based pricing and faster response to market opportunities. This includes strengthening our direct presence in high-growth markets, drive commercial synergies in our Partnering Business, and improving our ability to capture and convert customer demand.

3. OPERATIONAL EXCELLENCE:

We will drive operational improvements across the value chain, from supply chain efficiency and manufacturing productivity to service delivery and working capital management. As part of these measures, we consolidated our precision machining operations in Vietnam and, as a result, divested the related capacities in Morgan Hill in the U.S. earlier this year. Our expanded global footprint provides the foundation; we will optimize it for cost competitiveness and operational leverage.

Our people and culture are a prerequisite for the successful transformation. We will build on our team's expertise and become the destination for top talent by combining exceptional people with leading technology in the most effective ways. Our global footprint is a competitive advantage when fully realized through collaboration, knowledge sharing, and rapid deployment of best practices across our organization. We are aligning everyone toward a common objective: creating exceptional value for customers and shareholders, based on a culture of performance and accountability.

Following a period of end-market uncertainty and subdued growth, we expect end-markets to recover gradually. However, a full normalization is not anticipated in 2026, and market growth is expected to range from a moderate decline to moderate growth. Further, we assume tariffs¹ to remain at the rate set prior to the recent ruling of the Supreme Court of the United States. With anticipated improvements in certain customer segments, but continued uncertainty in others, we are initiating the short-term financial outlook for Tecan for 2026, expecting sales to increase in the low single-digit percentage range in local currencies. Foreign exchange rates and the annualized impact from tariffs will continue to weigh on profitability in 2026, and we forecast an adjusted EBITDA¹ margin of 15.5% to 16.5% of sales – excluding restructuring, acquisition, and integration-related costs. In the years 2027-2028, we expect a continued gradual improvement in end-markets, with market growth increasing to a range of 1% to 3%. Our aim is to outperform the underlying market, targeting sales of CHF 1 billion¹ by 2028. At the same time, we expect adjusted EBITDA margins to reach 20%¹ of sales by 2028. This will be supported by the ongoing “Rewired” transformation program, which we expect to contribute between 200 and 300 basis points, coming from incremental revenue and efficiencies across operations, commercial, G&A and R&D, with an acceleration of the impact in 2027 and 2028. From 2029 onwards, we assume a return to normal market conditions, with market growth in the previous range of 3% to 5%. In this environment, we expect to return to average organic growth rates in the mid- to high-single-digit percentage range in local currencies, while continuously improving profitability. These targets balance near-term recovery with medium-term ambition. They reflect our commitment to profitable growth and disciplined capital allocation.

Tecan has the building blocks for success: The unique strength of our synergistic and diversified platform combined with the integration of three mutually reinforcing pillars innovation, customer relationships, and global infrastructure.
The issues that impacted our performance have been identified and are being addressed. Our core is intact and we have outlined the value creation path, which will help achieve our targets. The market forces shaping our industry, AI integration, automation imperatives, scientific complexity, economic pressure, are powerful and durable. We expect them to be the source of significant global growth in laboratory automation over the coming decade. Our aim is to benefit from this, to drive profitable growth for Tecan, above the growth of the market, by leading the AI- and data-driven future of life sciences with our automation expertise. To achieve this, we will future-proof Tecan to excel in both innovation and execution. Technology leadership and the ability to translate innovation into profitable growth are decisive for creating value for customers and shareholders alike. Our success will be underpinned by our commitment to strong financials, disciplined capital allocation and attractive returns for shareholders, combined with the strategic discipline and execution rigor to realize our long-term potential. The opportunity ahead for a future-proofed Tecan is substantial. We are taking the necessary steps to seize it.

1. Assumes tariff rates in effect as of December 31, 2025. Any changes to tariff rates may impact the outlook. Profitability expectations for 2026 and for the medium-term sales and adjusted EBITDA margin outlook are based on an average exchange rate forecast of one euro equaling CHF 0.92 and one US dollar equaling CHF 0.80.

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