RemunerationStarting from the financial period 2020, the principles of the remuneration of KH Group’s governing bodies, that is, the Board of Directors and the CEO, are defined in the Remuneration Policy. Remuneration policy 2023 Remuneration reportingThe company draws up a remuneration report for each financial period. It is presented to the Annual General Meeting each year and explains the remuneration paid and due to the governing bodies for the previous financial period. Remuneration Report 2024Remuneration Report 2023Remuneration Report 2022 Key remuneration principlesRemuneration of the members of the Board of DirectorsIn accordance with the decision of the Annual General Meeting of 2025 the remuneration of the Board of Directors remain unchanged, so that the Chairman of the Board of Directors be paid as remuneration EUR 3,550 per month and the members of the Board of Directors each EUR 2,300 per month, and that the travel expenses of the members of the Board of Directors be compensated in accordance with the company’s travel policy. Earnings-related pension insurance contributions are paid voluntarily for the paid remuneration. Remuneration of the CEOCEO Ville Nikulainen’s fixed remuneration consists of a monthly salary of EUR 16,000. A short-term incentive has been defined for CEO for the current fiscal year. The CEO’s service contract is a valid indefinitely. Both the company and the CEO have the right to terminate the service contract with six (6) month’s notice. The CEO’s retirement age and the basis for determining the pension are determined by law. Remuneration of other managementThe company’s other management includes the CFO. The CFO’s fixed remuneration consists of a monthly salary and fringe benefits. A short-term incentive has been defined for CFO for the current fiscal year. The CFO’s service contract is valid indefinitely. Both the company and the CFO have the right to terminate the service contract with three (3) month’s notice. In 2024 the salary and fees paid to other management was EUR 212,634 in total, divided as follows: RoleFixed remuneration, EURVariable remuneration, EURTotal, EUROther management212,58054,000212,634 Share-based incentive schemesThe Board of Directors of KH Group Plc resolved to establish a performance share plan for the key employees of KH-Koneet. The plan replaces the performance matching share plan announced on 31 May 2024. The aim of the new plan is to align the objectives of the shareholders and key employees to increase the value of the company in the long term, to steer them toward achieving the company’s strategic objectives, to retain them at the company and to offer them a competitive incentive plan that is based on acquiring and accumulating KH Group shares. The performance share plan consists of one (1) two-year (2-year) performance period, covering the financial years of 2025–2026. In the plan, the key employees have an opportunity to earn KH Group shares based on performance. The potential rewards from the plan will be paid within five months after the end of the performance period. The rewards will be paid partly in KH Group shares and partly in cash. The cash proportion is intended to cover taxes and social security contributions arising from the reward to the participant. As a rule, no reward will be paid if a participant’s employment or service terminates before the reward payment. The performance criteria for the key employees of KH-Koneet are based on KH-Koneet’s EBIT in 2026 and Return on Invested Capital in 2026. The target group of the plan consists of approximately 20 persons, including members of the KH-Koneet Management. The rewards to be paid on the basis of the plan correspond to the value of an approximate maximum total of 1,094,000 KH Group shares, including also the proportion to be paid in cash. The members of KH-Koneet Management are obliged to hold 50 per cent of the reward shares received, until the total value of the Management member’s shareholding in KH Group equals to 50 per cent of their annual base salary of the year preceding the payment of the reward. Respectively, the CEO of KH-Koneet is obliged to hold 50 per cent of the reward shares received, until the person’s shareholding in KH Group equals to the annual base salary of the year preceding the payment of the reward. Such number of KH Group shares must be held as long as the membership in the Management or the position as the CEO continues.