PUUILO PLC, STOCK EXCHANGE RELEASE, 17 April 2025 at 10.15 EEST

BOARD OF DIRECTORS OF PUUILO PLC ESTABLISHED A NEW LONG-TERM INCENTIVE PLAN FOR COMPANY’S KEY EMPLOYEES

The Board of Directors of Puuilo Plc has today resolved to establish a new Long-Term Incentive Plan for the key employees of the Company and its subsidiaries (“LTI”) and launch the first LTI plan period for 2025–2027.

The purpose of the LTI is to encourage the key employees to acquire and own the Company’s shares. The LTI also aims to align the interests of the shareholders and the key employees as well as to increase key employees’ motivation and long-term commitment to the Company.

The LTI is intended to consist of annually commencing plan periods, each with a 12-month savings period followed by a holding period of approximately one and a half year. The Board of Directors will resolve annually on the launch of a new plan period. Participation in the LTI is voluntary, and key employees are invited to participate in each plan period separately.

The first LTI plan period 2025–2027 begins on 1 June 2025 and ends on 31 May 2028. The first savings period ends on 31 May 2026. The holding period begins at the first acquisition of savings shares. In the 2025–2027 plan period, the LTI is offered to approximately 100 key employees of the Group, including also the Management Team and the CEO.

As part of the LTI, the key employees have an opportunity to make a one-off investment and/or save a proportion of their salaries and invest those savings in Puuilo shares. With the savings of the 2025–2027 plan period, Puuilo shares will be acquired in four tranches estimated in September 2025, December 2025, March 2026 and June 2026.

In the 2025–2027 plan period, as a reward for their commitment, the Company grants the key employees participating in the LTI a gross reward of one free matching share for every savings share acquired with their savings. The participants have also an opportunity to earn one to three performance-based matching shares (gross) for each savings share acquired with their savings if the performance criteria set for the plan period are met. The performance criteria of the plan are tied to the total shareholder return of the share (TSR), the company’s adjusted earnings before interest, taxes and amortisation (EBITA) and return on invested capital (ROIC). Continuity of employment and holding of acquired savings shares for the duration of the holding period, ending on the day following the 2027 financial statement release, are prerequisites for receiving the award.

The potential award will be paid partly in shares and partly in cash after the end of the holding period. The cash proportion is intended to cover taxes and statutory social security contributions arising from the award. Matching shares will be freely transferable after their registration in a participant’s book-entry account. The savings shares and matching share are Puuilo shares.

The maximum number of matching shares (gross before taxes) for the first plan period of 2025–2027 is approximately 519 000 shares, calculated at the share price on 16 April 2025. The final number of matching shares depends on the key employees’ participation and savings rate in the plan, the fulfilment of the prerequisites for receiving matching shares and the number of shares acquired from the market with savings.

PUUILO PLC

For more information:

Ville Ranta, CFO, tel. +358 40 555 4995

Email: ir (@) puuilo.fi

Images for media use: https://www.puuilo.fi/medialle