1. Auditors

1.1 Duration of the mandate and term of office of the lead auditor

1.1.1 Date of assumption of the existing mandate

SWA Swiss Auditors AG (SWA) is the Auditor of Züblin Group and Züblin Immobilien Holding AG since 2022. The auditors are elected annually by the AGM.

The audit mandate is periodically re-tendered. This was last done in March 2022.

1.1.2 Date on which the lead auditor took up office

Mr. Franco A. Straub is the lead auditor since the financial year 2022/23. His maximum term of office shall be seven years. The rotation cycle complies with the legal regulations.

2. Audit fees

The audit fees including the half-year review for SWA amouted to kCHF 52 in the financial year 2023/24.

3. Additional fees

No additional services were provided by SWA in the financial year 2023/24.

4. Informational instruments pertaining to the external audit

The Board of Directors is responsible for the supervision and control of the auditors and performs this task together with the Audit Committee (AC) as well as the Executive Management. Board of Directors, AC and Executive Management meet for this purpose at least once a year.

In addition to the experience gained from the long-lasting cooperation, AC’s performance assessment of the auditors includes the duration and cooperation of the annual audit, their interaction with the responsible employees, the depth of the audit of individual business transactions as well as the content of the written report to the Board of Directors. The AC maintains direct contact with the auditors and exchanges information with them on all matters within the ambit of the AC. The AC is also responsible for monitoring the performance of the external auditors and reviews their independence on an ongoing basis. In addition, the AC monitors whether, and how, Executive Management implements measures that have been adopted based on findings by the external auditors. The AC can also task the statutory auditors with additional audit duties, particularly with regard to specified key risks.

The external auditors notify the AC of their findings with regard to the annual reports in the form of a management presentation and a respective report. The audit results are examined and discussed in detail with the external auditors. These results form the basis for improvements to internal procedures and auditing processes.

The AC reports to the Board of Directors on the discussions that the Committee has held with the external auditors and informs it of the most important findings and action taken.

During financial year 2023/24, representatives of the external auditors participated in two AC meetings. These meetings were held together with the Executive Management. The AC was able to assure the independence of the external auditors.

5. Independent real estate appraisers

The open market value of each property in the Züblin portfolio is calculated by external, independent specialists on 30 September (semi-annual report) and 31 March (annual report). This procedure complies with the regulations laid down in IAS 40 (Investment Property) and IFRS 13, which are applied by the Züblin Group.

Since October 2014 Jones Lang LaSalle (JLL) appraises the entire portfolio. JLL valued all of the properties as at 31 March 2024 and the results of these valuations were used in the financial statements. JLL uses the discounted cash flow method for its property valuations. In this method the current market value of each property is determined by calculating or estimating its future revenues and expenses and discounting these over the forecast horizon. In financial year 2023/24 the fees for the real estate appraisers amounted to kCHF 46.