Incentive Programs

Exel Composites' performance-based incentive program covers all employees. Salaried employees receive a monthly salary and an annual bonus tied to the attainment of annually established goals emphasising growth and profitability. Non-salaried employees are also eligible for incentive compensation, but their annual bonus is based on productivity.

The Group has a long-term incentive program for the Group Management Team and selected key employees of the company. The aim of the program is to commit persons entitled to participate in the Program to improve Exel Composites Plc's long-term profitability and value and reward them for achieving these goals in line with Exel Composites' strategy and financial targets. The program is confirmed annually by the Board of Directors.

The Participants shall earn the reward under the annual program if the financial performance targets as set by the Board of Directors for the program have been met. The Board of Directors will decide on the targets related to the growth of the Exel Composites Group's earnings per share (EPS) and return on capital employed (ROCE) for each program separately before the beginning of the program. The maximum amount of reward for each annual program is decided by the Board of Directors and can be denominated as cash or a corresponding number of granted shares. There is a vesting period of two years before the title of the shares is transferred. The disbursement of the rewards is subject to the participant being employed or being in the service, and having not given notice thereof, of the Group at the time of disbursemenet, unless otherwise decided by the Board. The cost of the program will be accounted for as operating expenses and accrued for in the financial statements. Under the 2010 program, the reward was denominated in cash and the allocated rewards totaled EUR 0.6 million and the cost has been accrued for in the financial statements 2010.