Lassila & Tikanoja Plc's Board of Directors decided on share-based incentive plans

Lassila & Tikanoja Plc                                                                                                                                                
Stock exchange release                                                                                                                  
15 December 2022 at 10

Lassila & Tikanoja Plc's Board of Directors decided on share-based incentive plans

The Board of Directors of Lassila & Tikanoja Plc has decided to establish two new long-term share-based incentive plans for the Group's key employees. The aim of the new plans is to align the objectives of the company, shareholders and key employees in order to increase the value of the company in the long term, to retain the key employees at the company and to offer them competitive reward plans that are based on earning and accumulating the company’s shares as well as on appreciation of the share price.

Performance Share Plan 2023–2027

The Performance Share Plan 2023–2027 comprises three (3) three-year (3) performance periods covering the calendar years 2023–2025, 2024–2026 and 2025–2027.

In the plan, a participant has the opportunity to earn Lassila & Tikanoja Plc shares based on the achievement of performance criteria. The Board of Directors decides on the performance criteria of the plan and the performance levels to be set for each performance criterion at the beginning of a performance period. The potential rewards based on the plan will be paid after the end of each performance period.

During the performance period 2023–2025, the earning of rewards is based on the following performance criteria:

• Return on capital employed, ROCE, (50%) during the period 2023–2025;
• Total shareholder return, TSR, (30%) during the period 2023–2025;
• Reduction of the carbon footprint, ESG, (20%) during the period 2023–2025.

The rewards to be paid based on the performance period 2023–2025 correspond to the value of approximately 237,300 Lassila & Tikanoja Plc shares in maximum total, also including the portion to be paid in cash. The target group of the Performance Share Plan during the performance period 2023–2025 consists of approximately 50 key employees, including the Group's President and CEO and the Group Executive Board.

Bridge Plan 2023–2026

The Bridge Plan 2023–2026 has two (2) one-year (1) performance periods covering the calendar years 2023 and 2024. A performance period is followed by a two-year retention period. The aim of the plan is to support the transition from the old Performance Share Plan to the new Performance Share Plan.

In the plan, a participant has the opportunity to earn Lassila & Tikanoja Plc shares based on the achievement of performance criteria. The Board of Directors decides on the performance criteria of the plan and the performance levels to be set for each performance criterion at the beginning of a performance period. The potential rewards based on the plan will be paid after the end of each performance period.

During the performance period 2023, the earning of rewards is based on the following performance criteria:

• Return on capital employed, ROCE, (80%) in 2023;
• Reduction of the carbon footprint, ESG, (20%) in 2023.

The rewards to be paid based on the performance period 2023 correspond to the value of approximately 83,800 Lassila & Tikanoja Plc shares in maximum total, also including the portion to be paid in cash. The target group of the Bridge Plan during the performance period 2023 consists of approximately 10 key employees, including the Group's President and CEO and the Group Executive Board.

General information

The rewards of the Performance Share Plan and the Bridge Plan are paid partly in Lassila & Tikanoja Plc shares and partly in cash. The cash proportions of the rewards are intended for covering taxes and tax-related expenses arising from the rewards to the participants. In general, the reward payment to the participant is not binding if their employment or director contract terminates during a performance period or a retention period.

A member of the Group Executive Board is obliged to hold at least 50 per cent of the net shares paid to them under the plans until the value of their total shareholding in the company corresponds to the value of their annual salary. Such number of shares must be held as long as the membership in the Group Executive Board continues.

LASSILA & TIKANOJA PLC

The Board of Directors

For additional information, please contact:

Sirpa Huopalainen

General Counsel

Tel. +358 40 5965241

Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions’ carbon handprint, our positive effect on the climate. We assume our social responsibility by looking after the work ability of our personnel as well as offering jobs to those who are struggling to find employment, for example. With operations in Finland and Sweden, L&T employs 8,171 people. Net sales in 2021 amounted to EUR 812.5 million. L&T is listed on Nasdaq Helsinki.

Distribution:

Nasdaq Helsinki

Major media

www.lt.fi/en