SCOTTS CAPE HORN BEVERAGE LLC

participation. The contribution rate is automatically escalated by an additional 1 % of compensation up to a maximum of 6 % of compensation. Employees also receive the applicable Company matching contribution. The Company provides matching contributions of 200 % of employees’ initial 3 % contribution and 50 % of their remaining contribution up to 6 %. At the end of each Plan year, the Company provides, if necessary, an additional true-up matching contribution to employees, based on their total elective contributions and eligible compensation for the Plan year. The Company may make additional discretionary profit sharing matching contributions to eligible employees on their initial 4 % contribution. The Company may also make additional discretionary employer special contributions to the Pl

to the benefit provided from the participant’s vested account balance. 4 THE SCOTTS COMPANY LLC Retirement Savings Plan Notes to Financial Statements Vesting All participants are immediately vested in their contributions to the Plan plus actual earnings thereon. Company matching contributions and discretionary employer special contributions vest immediately, however, base retirement contributions made by the Company prior to January 1, 2011 vested after three years of service or immediately upon death, attainment of age 65 or permanent and total disability. Forfeitures The non-vested portions of participant account balances are forfeitable and used to reduce Company contributions to the Plan and to pay reasonable Plan expenses. Forfeitures used to reduce Company contributions or to offset

age 50 or older by the end of the calendar year may make catch-up contributions, with an enhanced catch-up limit available to those between ages 60 and 63. Eligible employees are automatically enrolled in the Plan at a pre-tax contribution rate of 3 % of compensation for those who do not opt out of such participation. The contribution rate is automatically escalated by an additional 1 % of compensation up to a maximum of 6 % of compensation. Employees also receive the applicable Company matching contribution. The Company provides matching contributions of 200 % of employees’ initial 3 % contribution and 50 % of their remaining contribution up to 6 %. At the end of each Plan year, the Company provides, if necessary, an additional true-up matching contribution to employees, based on their t

318 Net appreciation in fair value of investments 100,690,955 88,751,830 Total investment income 108,261,366 96,302,148 Benefits paid to participants ( 86,083,744 ) ( 81,454,184 ) Administrative expenses ( 243,759 ) ( 237,740 ) Net increase in net assets 78,191,056 69,589,526 Net assets available for benefits: Beginning of year 691,419,657 621,830,131 End of year $ 769,610,713 $ 691,419,657 See Notes to Financial Statements. 3 THE SCOTTS COMPANY LLC Retirement Savings Plan Notes to Financial Statements NOTE 1. DESCRIPTION OF PLAN The Scotts Company LLC Retirement Savings Plan (the “Plan”) is a defined contribution plan covering substantially all employees of The Scotts Company LLC (the “Company”) and certain of its affiliates who meet the eligibility requirements. The Plan is subject to th

nce of stock options to purchase up to an aggregate of 3,600,000 shares of common stock. Options may be granted for such consideration as determined by the Board of Directors. The vesting schedule and exercise price of these options are tied to the recipient’s ownership level of common stock, the terms generally allow for the reduction in exercise price upon each vesting period and the options generally expire after ten years. The Board of Directors has also authorized the issuance of options to purchase up to 100,000 shares of common stock to be issued at the direction of the Chairman. The Key Employee Equity Partnership Program (“KEEP Program”) provides for the granting of stock options to purchase up to 480,000 shares of common stock to key employees, consultants, directors and officers

gross profit per case increased and gross margin remained constant at 37.0% for both Fiscal 2026 and Fiscal 2025. Shipping and handling costs are included in selling, general and administrative expenses, the classification of which is consistent with many beverage companies. However, our gross margin may not be comparable to companies that include shipping and handling costs in cost of sales. See Note 1-Significant Accounting Policies, of Notes to the Consolidated Financial Statements. Selling, General and Administrative Expenses Selling, general and administrative expenses for Fiscal 2026 decreased $1.3 million to $207.2 million from $208.5 million for Fiscal 2025. The decrease was primarily due to a decrease in administrative and shipping and handling costs, partially offset by an incre