29 Share participation plans

Share-based payments charged to personnel expenses

Restricted share unit plan settled in medmix shares

This long-term incentive plan covers the Board of Directors and certain new management members as a replacement for forfeited, unpaid and unvested performance and/or retention bonus payments and awards with previous employers. Restricted share units (RSUs) are granted annually to the Board of Directors and at the joining date of certain new management members. The plan features graded vesting over a one-year, two-year, or three-year period. One RSU award is settled with one medmix share at the end of the vesting period. The fair value of the RSUs granted is measured at the grant date closing share price of medmix Ltd, adjusted by expected dividends during the vesting period. Participants are not entitled to dividends declared during the vesting period. Consequently, the grant date fair value of the RSUs is reduced by the present value of the dividends expected to be paid during the vesting period.

Restricted share units for the Board of Directors

Restricted share units for new management members

Performance share plan settled in medmix shares

This long-term incentive plan covers the members of the Executive Committee and other selected individuals employed in defined roles. Performance share units (PSU) are granted annually, depending on the organizational position of the employee.

Vesting of the PSP is based on the achievement of three pre-determined performance conditions:

• Growth: measured by the revenue of medmix based on the consolidated financial statement, weighted at 30%.
• Profitability: measured by the adjusted EBITDA margin, weighted at 30%.
• Share performance: measured by the share price performance relative to the Swiss Performance Index excluding dividends, weighted at 40%. Share performance is measured using a starting value of the average share closing price over the first three months prior to the start of the three-year performance period and an ending value of the average share closing price over the last three months of the vesting period.

The number of vested PSUs is determined by multiplying the number of originally granted PSUs by the total achievement factor, rounded up to the next full number of vested PSUs. For each vested PSU, one medmix share will be transferred to the individual plan participant on the share delivery date.

The following inputs were used to determine the fair value of the PSUs at grant date using a Monte Carlo simulation:

The expected volatility of the medmix shares is determined by the historical volatility. The zero-yield curve from Switzerland was used as the relevant risk-free rate. Historical data was used to arrive at an estimate for the correlation between medmix and the Swiss Performance Index.

Performance share units – terms of awards

Performance share units