Marimekko to decide on the targets and potential rewards of the second earnings period of the long-term incentive system for the management

Marimekko Corporation, Stock Exchange Release, 16 February 2023 at 7.55 a.m.

Marimekko to decide on the targets and potential rewards of the second earnings period of the long-term incentive system for the management

The Board of Directors of Marimekko Corporation has defined the targets and potential rewards for the second earnings period of the Performance share plan 2022–2026 for the company’s management. The second earnings period of the incentive system will encompass 11 people including the President and CEO. The objective of the Performance share plan 2022–2026 is to continue aligning the interests of the management with the interests of the shareholders and to encourage the management to work on a long-term basis with the aim to increase the shareholder value. The potential reward from both earnings periods of the plan is based on total shareholder return (TSR) i.e. the total yield on Marimekko Corporation’s shares, including dividends, at the end of the period. The achievement of the required TSR levels will determine the proportion out of the maximum reward that will be paid to a participant.

The Board of Directors has decided that if the targets set for the second earnings period of 1 January 2023–30 June 2026 are met in full, the rewards to be paid on the basis of the period correspond to the value of an approximate maximum total of 290,148 Marimekko shares including also the cash portion of the reward. The potential rewards are primarily planned to be paid half in company shares and half in cash. The cash part of the reward is intended to cover the taxes and tax-like payments incurred by the participant.

The potential rewards from the second earnings period are estimated to be paid at the latest by the end of September 2026. Earning the reward requires that the person is still working for the company at the time of the payment. The reward amounts earned through the plan will be capped if the maximum limit set by the Board of Directors for the payable reward is reached. The shares received as a reward are subject to a two-year transfer restriction.

The Board of Directors of Marimekko Corporation established the Performance share plan 2022- 2026 to continue the share-based long-term incentives for the company’s management. The key terms of the incentive system targeted to the Management Group of Marimekko were published on 15 February 2022. The Performance share plan 2022–2026 is composed of two earnings periods: 1 January 2022–30 June 2025 and 1 January 2023–30 June 2026. Marimekko announced today that the Board has appointed two new members to the Management Group of Marimekko. At the same time, the Board decided to expand the incentive system targeted to the company’s management so that also the first earning period now encompasses 11 people including the President and CEO and if the targets set for the first earnings period of 1 January 2022– 30 June 2025 are met in full, the rewards to be paid on the basis of the period correspond to the value of an approximate maximum total of 172,706 Marimekko shares including also the cash portion of the reward.

Additional information: Mika Ihamuotila, Chair of the Board of Directors, tel. +358 9 758 71

MARIMEKKO OYJ
Corporate Communications

Anna Tuominen
Tel. +358 40 5846944
[email protected]

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Nasdaq Helsinki Ltd
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Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2021, the company’s net sales were EUR 152 million and brand sales of the products worldwide amounted to EUR 376 million. Globally, there are roughly 150 Marimekko stores, and online store serves customers in 35 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 410 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com