Remuneration

The objective of the remuneration of the Board of Directors and the President and CEO is to:

• contribute to the favourable development of shareholder value,

• enhance the Company’s competitiveness and long‑term financial success, and

• support the implementation of the strategy and the achievement of the Company’s objectives.

A key principle is that remuneration shall promote the achievement of these objectives and constitute, in terms of both level and structure, a remuneration package that is fair, incentive‑based, competitive and in line with market practices.

Decision‑making regarding remuneration

The Personnel and Sustainability Committee of the Board prepares the Remuneration Policy, which is reviewed by the Board of Directors and presented to the General Meeting.

The General Meeting considers the Remuneration Policy and adopts an advisory resolution on it.

The Personnel and Sustainability Committee monitors the implementation of the Remuneration Policy annually and, where necessary, submits proposals for measures to the Board of Directors.

In addition, the Board of Directors submits the Remuneration Report annually to the Annual General Meeting, enabling shareholders to assess how the Remuneration Policy has been implemented.

The General Meeting decides annually on the remuneration payable to the members of the Board of Directors for their Board and Committee work. The Shareholders’ Nomination Board prepares proposals concerning the remuneration of the Board of Directors.

Remuneration structure of the Board of Directors

• Chair: EUR 70,000

• Vice Chair: EUR 47,000

• Members: EUR 35,000 each

If a member of the Board of Directors who is not the Chair or Vice Chair serves as the Chair of the Audit Committee or the Personnel and Sustainability Committee, the annual fee is EUR 47,000.

Approximately 40% of the annual fee is paid in Lassila & Tikanoja Plc shares and the remainder in cash.

Meeting fees are paid as follows:

• Chair: EUR 1,000 per meeting

• Vice Chair: EUR 700 per meeting

• Members: EUR 500 per meeting

Meeting fees are also paid for Committees established by the Board: EUR 700 for the Chair of a Committee and EUR 500 for a Committee member per meeting.

Remuneration paid to the Board of Directors

As the Company commenced operations on 31 December 2025 and the length of the financial period was one (1) day, the Remuneration Report 2025 contains a limited description of remuneration.

The Board of Directors did not convene during the financial period 2025, and therefore no annual fees or meeting fees were paid to the Board of Directors for the financial period 2025.

The Board of Directors decides on the terms of the President and CEO’s service contract, which are defined in a written service contract, and on the remuneration payable to the President and CEO and its grounds.

Remuneration structure of the President and CEO

The remuneration of the President and CEO of L&T consists of a fixed monthly salary, ordinary fringe benefits, and short‑term and long‑term incentives in force from time to time.

Short‑term incentive scheme

The Board of Directors decides annually on the performance criteria of the short‑term incentive scheme and assesses their achievement. The maximum short‑term incentive corresponds to seven (7) months’ salary.

Any incentive bonuses are paid in February of the year following the calendar‑year earning period. Payment is conditional upon the President and CEO being employed by the Company at the time of payment.

Long‑term share‑based incentive schemes

The purpose of the Company’s long‑term incentive schemes is to commit participants to long‑term objectives, increase shareholder value, and provide a competitive share‑based incentive structure.

• The following share‑based incentive schemes apply to the President and CEO and include outstanding share awards:

  In connection with the demerger, the Company received the remaining performance periods 2024–2026 and 2025–2027 of the performance‑based share incentive scheme 2023–2027. Awards earned under these performance periods are paid no later than five months after the end of the performance period as a combination of shares and cash (“share‑based incentive scheme transferred in connection with the demerger”).

• A share‑based incentive scheme 2026–2030, decided by the Board of Directors on 27 February 2026, with performance periods 2026–2028, 2027–2029 and 2028–2030. Any rewards under the scheme will be paid after the end of each performance period.

Other key terms

The Board of Directors decides on the terms of the President and CEO’s service contract and on the remuneration payable to the President and CEO and its grounds. The remuneration consists of a fixed monthly salary, ordinary fringe benefits and incentives in force from time to time.

The service contract may be terminated subject to a six (6) months’ notice period. If the Company terminates the service contract for reasons other than a breach of contract or without grounds referred to in Chapter 8, Section 1 of the Employment Contracts Act (55/2001, as amended), the President and CEO is entitled, in addition to the salary for the notice period, to severance pay corresponding to twelve (12) months’ salary.

No separate remuneration is paid to the President and CEO for memberships in boards of subsidiaries or for duties in other companies within the L&T Group than the parent company.

Pension benefits are determined in accordance with applicable law.

Remuneration paid to the President and CEO

• Fixed monthly salary: EUR 39,000

• Short‑term incentive paid for 2025: EUR 103,658

• In addition, EUR 49,560 was paid based on the performance period 2023–2025 of the long‑term incentive scheme, of which 3,257 shares were delivered in shares and EUR 24,787.26 in cash.

Performance criteria for the long term intensive schemes performance period 2023–2025 were following:

• L&T’s three‑year average ROCE (weighting 50%). Outcome was 0%.

• L&T’s relative total shareholder return (rTSR) compared to the OMX Helsinki General Index (weighting 30%). Outcome was 0%.

• Reduction of L&T’s carbon footprint (ESG), cumulative reduction of 4% (weighting 20%). Outcome was 100%.

The Board of Directors decides on the remuneration of the members of the Group Executive Board and its grounds.

Remuneration structure of the Group Executive Team

The remuneration of the Group Executive Board consists of fixed monthly salaries, ordinary fringe benefits and incentives in force from time to time. Pension benefits are determined in accordance with applicable law.

Short‑term incentive scheme

The short‑term incentive of the members of the Group Executive Board is based on the Group’s financial performance and the achievement of strategic targets. The maximum short‑term incentive corresponds to three (3) to four (4) months’ salary, depending on the individual’s position.

The targets are set and performance is assessed annually. Any incentive bonuses are generally paid in February of the year following the calendar‑year earning period, provided that the employment relationship is in force at the time of payment.

Long‑term incentive schemes 

The purpose of the Company’s long‑term incentive schemes is to support long‑term commitment and the creation of shareholder value, and to provide a competitive share‑based incentive structure.

The following share‑based incentive schemes apply to the Group Executive Board and include outstanding share awards after the demerger:

• The remaining performance periods 2024–2026 and 2025–2027 of the performance‑based share incentive scheme 2023–2027, transferred in connection with the demerger. Awards are paid no later than five months after the end of the performance period as a combination of shares and cash.

• The share‑based incentive scheme 2026–2030 decided by the Board of Directors on 27 February 2026, with performance periods 2026–2028, 2027–2029 and 2028–2030. Any rewards will be paid after the end of each performance period.

For performance‑based share incentive schemes, outcomes are calculated in number of shares and confirmed in euros.

Other key terms

The notice period for the members of the Group Executive Board is six (6) months.

Statutory retirement benefits are determined in accordance with the Finnish earnings‑related pension system (TyEL).

No supplementary pension benefits are paid.

Remuneration paid to the Group Executive Board

• Fixed annual salaries for 2025: EUR 1,956,421

• Short‑term incentives paid for 2025: EUR 217,663

• In addition, a total of EUR 143,860.50 was paid based on the performance period 2023–2025 of the performance‑based share incentive scheme, half in shares and half in cash.

Performance criteria for the long term intensive schemes performance period 2023–2025 were following:

• L&T’s three‑year average ROCE (weighting 50%). Outcome was 0.

• L&T’s relative total shareholder return (rTSR) compared to the OMX Helsinki General Index (weighting 30%). Outcome was 0.

• Reduction of L&T’s carbon footprint (ESG), cumulative reduction of 4% (weighting 20%). Outcome was 100%.

All of the above Group Executive Board remuneration figures include the remuneration of the President and CEO and the other members of the Group Executive Board combined.