Aquafil

Remuneration Policy and Report

2024

Aquafil S.p.A. Remuneration Policy and Report

in accordance with Article 123-ter of the CFA and 84-quater of the Consob Issuers' Regulation

Location	Content	Errata Corrige
Table 1 - pp. 26-27	Change in compensation paid	Paragraph integration

Emittente: Aquafil S.p.A. Sito Web: www.aquafil.com Approved by the Board of Directors on March 18, 2025

Letter of the Chairperson of the Appointments and Remuneration Committee
Executive Summary
Introduction
1.1 Regulatory references
1.2 Purpose and content
1.3 Preparation and structure

SECTION I

11	1. Governance – Compliance – Management Procedures
13	2. Remuneration Policy
13	2.1 Purposes and principles of the Remuneration Policy
13	2.2 Changes to the Remuneration Policy
14	2.3 Description of the Remuneration Policy
17	2.4 Short-term variable component
18	2.5 Long-term variable component
20	2.6 Policy relating to treatments established in the event of termination of office or employment
20	2.7 Indication of any other companies' remuneration policies that may have been used as benchmarks,
	and criteria for selection of such companies
21	2.8 Waiver procedure

SECTION II

23	Part 1
23	1. Implementation of the 2024 remuneration policy
23	1.1 Fixed remuneration
23	1.2 Short-term variable component
24	1.3 Indemnity on termination of office/employment and Non-Competition Agreements
24	1.4 Application of ex post correction mechanisms
24	1.5 Waivers applied to the Remuneration Policy in 2024
25	Part 2

Letter of the Chairperson of the Appointments and Remuneration Committee

Dear shareholders,

as Chairperson of the Appointments and Remuneration Committee and together with my colleagues Patrizia Riva and Ilaria Maria Dalla Riva, I am pleased to submit for your attention Aquafil's Remuneration Policy and Report.

2024 saw Aquafil continue on the path of continuous improvement that it began in FY 2022 with respect to the Group's Remuneration Policy. Our objective is to unceasingly enhance the management practices designed to attract, motivate and retain the human capital that is essential in guaranteeing the Group's sustainable success.

As such, the short- and long-term ESG-based incentive systems were maintained once again in the Remuneration Policy proposed for 2025.

As in the past, the current Policy for 2025 - set out in Section I of this Report - aligns perfectly with market best practices. It also respects the Chairperson of the Corporate Governance Committee's recommendations on remuneration, set out in the letter published on December 17, 2024. The weighting of the variable component is clearly described for both long- and short-term plans, there is appropriate balance between the fixed and variable components, and variable compensation is explicitly linked to ESG targets.

Roberto Siagri Chairperson of the Appointments and Remuneration Committee

Information on remuneration paid in FY 2024 - set out in Section II of the Report - comprises all the relevant details and figures.

The Remuneration Policy and Report 2024 was approved by the Board of Directors on March 18, 2025 and is submitted to the Shareholders' Meeting in accordance with Article 123-ter of the CFA.

Together with my colleagues - to whom I express my heartfelt thanks for providing their expertise and professionalism to the Committee - I hope that the continued improvement in the content of our Policy and the quality of the disclosure in the Report will bear witness to the Committee's commitment, and hope, too, that it will meet with the broadest support at the Shareholders' Meeting.

EXECUTIVE SUMMARY

Remuneration component	Purpose	Award conditions			Amounts/Values %
Fixed remuneration	Takes account of the extent and strategic importance of the role, its distinctive characteristics and the strategic skills held	Salary level based on positioning in relation to market benchmark analysis		The fixed remuneration of the Chief Executive Officer (CEO) is Euro 1,250,000
Short-Term Variable Compensation (STI)	Designed to encourage management to work towards the achievement of annual targets that maximise the Aquafil Group's value, in line with shareholders' interests	KPI: • EBITDA (weighting 50%) • NFP/EBITDA (weighting 25%) • ESG (weighting 25%) Threshold: compliance with financial covenants Cap: there is a cap on the payout equal to 125% of the target incentive Clawback clause		CEO: • Target: 22% of Fixed Remuneration Executive Directors: • Target: 50% of Fixed Remuneration SEs: • Target: ranging between 40% and 50% of Fixed Remuneration
Long-Term Variable Compensation 2023-2027 LTI Plan	Encourages alignment between shareholder interests and sustainability of value creation in the medium to long term	Instrument: monetary Frequency of allocation: annual (rolling plan) Performance period: three years KPI: • TSR (weighting 30%) • ESG (weighting 25%) • EBITDA (weighting 25%) • NFP/EBITDA (weighting 20%) Deferment 50% of the bonus for a period of one year Cap: there is a cap on the payout equal to 125% of the target incentive Clawback clause		CEO: • Target: 22% of Fixed Remuneration Executive Directors: • Target: 50% of Fixed Remuneration SEs: • If participating in the plan, target: 50% of Fixed Remuneration
Combines compensation packages Benefits for improved alignment with market standards			Provision of goods and/or services in line with market practice and applicable regulations			Company car - insurance policies at least equal to those guaranteed to Company executives by the National Collective Bargaining Agreements for Industrial Executives
		2025	2026	2027		2028	2029
Timeframe for remuneration components	Fixed remuneration Benefits STI System LTI System
Paymix	15% 15% 70% CEO "target" pay mix		25% 25% 50% Directors "target" pay mix		LTI STI	Fixed remuneration

INTRODUCTION

1.1 Regulatory references

This Report was prepared by Aquafil in accordance with Article 123-ter of the CFA, Article 84-quater of the Issuers' Regulation, in addition to, on the basis of self-regulation, the Corporate Governance Code, which Aquafil complies with.

Furthermore, Legislative Decree No. 49 of 2019 introduced and implemented into Italian law the principles and provisions included in the Shareholder Rights Directive II, approved in 2017. Certain amendments were introduced to Article 123-ter of the CFA through this decree, among which, the binding vote of the Shareholders' Meeting on the first section of the report relating to the remuneration policy, and the non-binding vote on the second section of the report concerning compensation paid.

In preparing this report, account was taken of the indications expressed on the subject of remuneration policy by Consob, most recently with Resolution No. 21623 of December 10, 2020, which amended the Issuers' Regulation in implementation of the CFA. In addition, the principles expressed in Article 5 of the Corporate Governance Code for Listed Companies 2020 edition ("2020 Code") (with the specifications indicated below), in addition to the recommendations suggested by the Corporate Governance Committee, were adopted as general reference guidelines on remuneration policies.

1.2 Purpose and content

The annual remuneration report provides information aimed at increasing the knowledge and awareness of shareholders, investors and the market in general, as well as Consob, on the remuneration policies adopted by the Company, and on the amounts and composition of the remuneration paid to the beneficiaries.

Pursuant to Article 123-ter of the CFA, the Report comprises two sections.

Section I describes:

A. the Remuneration Policy adopted by the Company in 2025 for (i) Members of the Company's Board of Directors, distinguishing between Executive and Non-Executive Directors; (ii) Members of the Board of Statutory Auditors; and (iii) Senior Executives of the Group.
B. the procedures utilised for the preparation and adoption of the Remuneration Policy, in addition to the boards and parties responsible for the Policy's correct implementation.

Section II of the Report provides, with reference to FY 2024:

i. adequate and detailed information on the remuneration of Directors, with reference to fixed and variable monetary items, in addition to any other forms of remuneration, non-monetary benefits, and any other indemnity or form of compensation agreed in relation to early termination or natural termination without renewal of the office held;
ii. detailed information on the remuneration of Statutory Auditors;
iii. aggregate information on the remuneration of Senior Executives, with reference to fixed and variable monetary items, in addition to any other forms of remuneration, non-monetary benefits, and any other indemnity or form of compensation agreed in relation to early termination or natural termination without renewal of the office held;

1.3 Preparation and structure

The Remuneration Policy was prepared by the Company and approved by the Board of Directors on March 18, 2025, upon the recommendation of the Appointments and Remuneration Committee and after consultation with the Board of Statutory Auditors.

This Report is sent to Borsa Italiana and is made available to the public at Aquafil's registered office (Via Linfano 9, Arco) and on the Company's website www.aquafil.com, in the Corporate Governance section, at least twenty-one days before the Shareholders' Meeting called to approve the annual financial statements at December 31, 2024.

This Report is structured according to the guidelines set out in Article 84-quater of the Issuers' Regulation and in compliance with Annex 3, Schedule 7-bis and Schedule 7-ter referred to therein.

A relative table, as per Article 84-quater, paragraph 4 of the Issuers' Regulation, presents holdings in the Company or its subsidiaries by these parties (and by parties related to them).

The Remuneration Policy defines the principles and guidelines adopted by Aquafil for the remuneration of the members of the Board of Directors and Senior Executives.

The Company highlights that the remuneration policy in this Section I is proposed for the year 2025 only.

1. GOVERNANCE – COMPLIANCE – MANAGEMENT PROCEDURES

The principal parties and bodies involved in the preparation and approval of the Remuneration Policy are the Shareholders' Meeting, the Board of Directors, the Appointments and Remuneration Committee and the Board of Statutory Auditors.

The Board of Directors and the Appointments and Remuneration Committee are also responsible for the correct implementation of the Remuneration Policy and oversee its correct implementation.

A brief description of the duties, which in accordance with the applicable regulation and the By-Laws are required of these Boards with regards to the remuneration of the Directors, is provided below.

SHAREHOLDERS' MEETINGS

The Shareholders' Meeting:

(i) establishes the total remuneration of the members of the Board of Directors in accordance with Article 2364, paragraph 1, No. 3) of the Civil Code, also in accordance with Article 2389, paragraph 3 of the Civil Code and Article 15 of the By-Laws;
(ii) resolves, with a binding vote, as regards Section I of the Report, in accordance with Article 123-ter, paragraph 3-ter of the CFA;
(iii) resolves, with a non-binding vote, as regards Section II of the Report, in accordance with Article 123-ter, paragraph 6 of the CFA;
(iv) establishes any share-based remuneration plans or other financial instruments for Directors, employees or collaborators, including Senior Executives, where existing, in accordance with Article 114-bis of the CFA.

BOARD OF DIRECTORS

The Board of Directors:

(i) establishes internally an Appointments and Remuneration Committee;
(ii) establishes the remuneration of the Executive Directors on the proposal of the Appointments and Remuneration Committee, with prior opinion from the Board of Statutory Auditors, in accordance with Article 2389, paragraph 3 of the Civil Code and breaks down the fixed annual remuneration for execution of office, established in totality by the Shareholders' Meeting;
(iii) defines and reviews, on the proposal of the Appointments and Remuneration Committee, the Remuneration Policy;
(iv) approves the Report in accordance with Articles 123-ter of the CFA and 84-quater of the Issuers' Regulation;
(v) prepares any remuneration plans based on shares or other financial instruments for Directors, employees and collaborators, including Senior Executives, where existing, submitting such for the approval of the Shareholders' Meeting in accordance with Article 114-bis of the CFA and oversees their implementation.

APPOINTMENTS AND REMUNERATION COMMITTEE

The Appointments and Remuneration Committee is an advisory and proposing body that - in its capacity as remuneration committee - has the task of assisting the Board of Directors through investigative functions in the assessments and decisions concerning the remuneration policy of Directors and Senior Executives. Specifically:

(i) periodically assesses the suitability, overall consistency and real application of the remuneration policy for Directors and Senior Executives. In the latter regard, it makes use of information provided by the Chief Executive Officers; formulates proposals to the Board of Directors on this matter, also with reference to the Board of Directors of the subsidiaries; and
(ii) presents proposals or expresses opinions to the Board of Directors on the remuneration of Executive Directors and other Senior Directors, as well as establishing the performance targets related to the variable component of this remuneration; assesses the possibility of establishing long-term incentive plans for Executive Directors and Senior Executives; monitors the application of the decisions adopted by the Board verifying, in particular, the achievement of the performance targets.

The Appointments and Remuneration Committee is composed of three Non-Executive, Independent Directors. Directors Patrizia Riva and Ilaria Maria Dalla Riva were appointed by Board of Directors resolution on April 27, 2023. In FY 2024, following the resignation of the Director Mr. Francesco Profumo, Mr. Roberto Siagri was co-opted to the Board of Directors (for further information, refer to the Corporate Governance and Ownership Structure Report 2024, approved on March 18, 2025). Following his co-option, Mr. Siagri was also appointed, for the purposes relevant herein, Chairperson of the Appointments and Remuneration Committee.

This committee currently comprises:

Roberto Siagri (Chairperson);
Patrizia Riva;
Ilaria Maria Dalla Riva.

Upon appointment and, most recently, on March 18, 2025, the Board of Directors positively assessed that all members of the Committee met the requirements of adequate knowledge and expertise in financial matters and, in particular, that the Chairperson met the requirement of experience in remuneration policies.

The composition, duties and operating procedures of the Appointments and Remuneration Committee are governed by the Corporate Governance Code and specific regulations, approved by the Board of Directors and most recently updated on February 15, 2024.

Meetings of the Appointments and Remuneration Committee are attended by the Chairperson of the Board of Statutory Auditors and/ or the Statutory Auditors and, on invitation, by representatives of company departments and independent experts and/or other parties, whose participation is considered beneficial for the discussion of the matters at issue.

Where considered necessary or beneficial for the execution of its duties, the Appointments and Remuneration Committee may utilise external remuneration policy consultants. In 2024, the Appointments and Remuneration Committee met five times, in addition to three meetings in the first quarter of 2025. The attendance of Committee members is reported in the Corporate Governance and Ownership Structure Report, available on the company website www.aquafil.com.

Appointments and Remuneration Committee meetings were always attended by the Chairperson of the Board of Statutory Auditors and all Statutory Auditors (with the exception of one Committee meeting, when one Statutory Auditor was absent with justification). Executive Directors and/or Senior Executives did not participate in Committee discussions that concerned decisions relating to their compensation or that placed them in situations of conflict of interest.

APPOINTMENTS AND REMUNERATION COMMITTEE BUSINESS CYCLE 2024

The Board of Statutory Auditors expresses an opinion upon the remuneration proposals of the Executive Directors, in accordance with Article 2389, paragraph 3 of the Civil Code, verifying the consistency of such with the Remuneration Policy adopted by the Company.

INDEPENDENT AUDIT FIRM

The independent audit firm of Aquafil verifies that the Directors have prepared the second section of the Report, as required by Article 123-ter, paragraph 8-bis of the CFA.

2. REMUNERATION POLICY

2.1 Purposes and principles of the Remuneration Policy

Aquafil's Remuneration Policy is based on the following key principles and is defined according to the following criteria:

this policy seeks to attract, retain and motivate individuals of high professional standing, with particular regard to key positions for the development and management of the business, through a remuneration structure which recognises the value of the individual and their contribution to company growth. In determining the Company's Remuneration Policy, the working conditions of its employees were considered;
the contribution to the Company's strategy and sustainability: remuneration recognizes the achievement of performance targets, mainly in terms of economic-financial indicators and set and measurable targets. To reinforce the progress towards generating shared value, the Group has aligned its Remuneration Policy with its sustainability strategy, including the main objectives of the Sustainability Plan within the short-term (STI) and long-term (LTI) variable incentive system;
the alignment of the interests of company and Group management with the pursuit of the objective to create value for Aquafil shareholders over the medium/long-term. In this regard, a long-term incentive system linked in part to Total Shareholder Return performance over a three-year time period was introduced. Alignment with shareholder interests is further strengthened by an appropriate balance between the fixed and variable components.

In line with the above principles, the Company shall present this document for the approval of the Shareholders' Meeting of April 28, 2025.

2.2 Changes to the Remuneration Policy

Compared to the Remuneration Policy approved for FY 2024 by the Shareholders' Meeting of April 23, 2024, this Remuneration Policy introduces a variation as regards long-term remuneration, changing the ESG Risk Rating for the cycles 2023-2025, 2024-2026 and 2025- 2027. This is because, as of FY 2025, Sustainalytics no longer conducts ESG Risk Rating on a voluntary basis. As such, this performance target was replaced by the Ecovadis ESG Risk Rating.

As regards the short-term incentive system (STI), the weighting of performance targets has been changed from the Remuneration Policy approved for FY 2023. Specifically, the weighting of the "EBITDA" target has been reduced to 50%, while the "NFP/EBITDA" target weighting has been increased to 25%. The previous weighting percentages were 55% for the "EBITDA" target and 20% for the "NFP/ EBITDA" target.

Finally, in the interests of motivating Top Management and Senior Directors, an extraordinary one-off fixed amount has been provided with this Report for FY 2025. The Board of Directors resolved to include this extraordinary amount of fixed remuneration in this remuneration policy at its meeting on March 18, 2025, upon the proposal of the Appointments and Remuneration Committee and after consultation with the Board of Statutory Auditors. The total amount of this bonus is Euro 360,000.00, and may be paid to the CEO and Executive Directors - subject to the opinion of the Appointments and Remuneration Committee and the Board of Statutory Auditors - and, according to internal allocation percentages to be determined by the CEO himself, to Senior Executives. The disbursement conditions are those provided under the STI Regulation. The amount will be disbursed in FY 2025.

2.3 Description of the Remuneration Policy

The Remuneration Policy provides that the fixed and variable components are established on the basis of principles and processes according to the beneficiary category.

In this regard, on March 18, 2025, the Board of Directors of the Company, on the proposal of the Appointments and Remuneration Committee, identified - in light of the positions and respective roles held within the Group - the Senior Executives for the purposes of the remuneration policy.

The Company in any case considered it appropriate to create a remuneration system based on the Executive/managerial responsibilities of the parties concerned and therefore independently set the criteria for determining the remuneration of: Directors, Executive Directors, Board of Statutory Auditors, and Senior Executives.

DIRECTORS

All Directors receive a fixed remuneration which appropriately compensates the work and commitment they provide to the Company.

The Shareholders' Meeting held on April 27, 2023, with regard to the definition of the remuneration due to the Directors, resolved to set the Board of Directors' remuneration at a total of Euro 440,000 per year, to be distributed among its members in compliance with the resolutions to be taken by the Board of Directors, subject to any further remuneration due to the Directors holding specific offices to be established by the Board of Directors pursuant to Article 2389, paragraph 3, of the Civil Code.

In fulfilment of the foregoing and as a breakdown of the total remuneration awarded by the Shareholders' Meeting, the Board of Directors meeting held on April 27, 2023 for the mandate 2023-2025, determined the following remuneration:

REMUNERATION OF DIRECTORS - 2023-2025 Mandate
Member of the BoD	€ 40,000	Appointments and Remuneration Committee:		Control, Risks and Sustainability Committee:
		Chairperson	€ 15,000	Chairperson	€ 15,000
		Member	€ 10,000	Member	€ 10,000

For details regarding compensation paid please see Table 1.

Non-Executive Directors (whether or not Independent Directors) are paid a fixed annual fee for the office outlined above, which is determined on an individual basis by the Board of Directors in view of the total amount determined by the Shareholders' Meeting, pursuant to Article 2389 of the Civil Code.

On May 11, 2023, after consultation with the Appointments and Remuneration Committee and with the Board of Statutory Auditors, the Board of Directors resolved to award the Chairperson of the Board of Directors, Ms. Chiara Mio the sum of Euro 100,000 (one hundred thousand) per fiscal year, in consideration of this particular office pursuant to Article 2389, paragraph 3 of the Civil Code.

The remuneration of these Directors is not based on any financial results or specific objectives of the Company and is commensurate with the commitment required, also in relation to participation on internal Board committees, for which specific remuneration is allocated.

Executive Directors - Chief Executive Officer and other Executive Directors

The remuneration of Executive Directors is adequately balanced in order to ensure consistency between short-term development objectives, while taking into account the values of sustainability that drive operations, aimed at creating value for shareholders in the long term.

CEO TARGET REMUNERATION PACKAGE

FIXED REMUNERATION		VARIABLE REMUNERATION		FRINGE BENEFITS
Fixed compensation	€ 1,250,000	STI (target bonus) LTI (target bonus)	€ 275,000 € 275,000	Company car and insurance policy for medical expenses, death, permanent
		Total variable (target)	€ 550,000	disability and injury at least equal to the policies guaranteed by National
		Total	€ 1,800,000	Collective Bargaining Agreements for company directors.
		Fixed remuneration STI LTI 15% 15%	70%

Specifically, the Chief Executive Officer (CEO)'s remuneration structure is made up of:

a fixed component: this component takes account of the extent and strategic importance of the role, its subjective distinctive characteristics and the strategic skills assigned to the role. Considering the benchmark analyses and the prior opinion of the Appointments and Remuneration Committee, along with that of the Board of Statutory Auditors, the CEO's total fixed remuneration, including the fixed compensation received from the subsidiary company Tessilquattro S.p.A., was approved by the Board of Directors on May 11, 2023, at Euro 1,250,000 (one million two hundred and fifty thousand) per fiscal year.
a short-term variable component: the purpose of this component is to encourage management to work towards the achievement of annual targets that maximise the Aquafil Group's value, in line with shareholders' interests. The target bonus is determined as a percentage of fixed remuneration and is set at 22%. The maximum bonus is 125% of the target bonus. The entry threshold includes compliance with financial covenants.

For the description of the short-term variable component reference should be made to Paragraph 2.4.

• a long-term variable component: the Chief Executive Officer was included among the beneficiaries of the Company's long-term monetary incentive plan (2023-2027 LTI Plan). This component is designed to incentivise management to work toward achieving medium- to long-term goals. The target bonus is determined as a percentage of fixed remuneration and is set at 22%. The maximum bonus is 125% of the target bonus.

The long-term variable component has been changed for the 2023-2025, 2024-2026, and 2025-2027 cycles as Sustainalytics no longer conducts ESG Risk Rating on a voluntary basis. As such, this performance target was replaced by the Ecovadis ESG Risk Rating. For the description of the long-term variable component and of the changes made, reference should be made to Paragraph 2.5.

Overall in 2025, as was the case in 2024, the weighting for variable remuneration has been increased in order to align the interests of the Chief Executive Officer with those of all shareholders, strengthening the link with the Pay for Performance principle.

• fringe benefits: fringe benefits concern the supply of goods and/or services assigned in accordance with market practice and as per applicable legislation. In particular, Aquafil's Chief Executive Officer is the beneficiary of a company car and of insurance policies for the reimbursement of medical expenses, death, permanent disability and accident at least of the same level as those guaranteed to the Company's Executives under the National Collective Bargaining Agreements for Industrial Executives policy.

The remuneration of the other Executive Directors comprises:

a fixed component: this component takes account of the extent and strategic importance of the role, its subjective distinctive characteristics and the strategic skills assigned to the role. The amount is sufficient to remunerate the service also in the case of the partial reaching of the performance targets upon which the variable remuneration component is based. More specifically, the fixed component is calculated according to the size of the business managed, the various areas of responsibility covered, Aquafil Group's complex corporate structure, including internationally, also taking account of market practice for similar positions at industrial sector companies.
a short-term variable component: encourages management to work towards the achievement of annual targets that maximise the Aquafil Group's value, in line with shareholders' interests. The target bonus is determined as a percentage of fixed remuneration and is set at 50%. The maximum bonus is 125% of the target bonus. The entry threshold includes compliance with financial covenants.

For the description of the short-term variable component reference should be made to Paragraph 2.4.

• a long-term variable component: the other Executive Directors were included among the beneficiaries of the Company's longterm monetary incentive plan (2023-2027 LTI Plan). This component is designed to incentivise management to work toward achieving medium- to long-term goals. The target bonus is determined as a percentage of fixed remuneration and is set at 50%. The maximum bonus is 125% of the target bonus.

The long-term variable component has been changed in this Report for the 2023-2025, 2024-2026, and 2025-2027 cycles as Sustainalytics no longer conducts ESG Risk Rating on a voluntary basis. As such, this performance target was replaced by the Ecovadis ESG Risk Rating.

For the description of the long-term variable component and of the changes made, reference should be made to Paragraph 2.5.

• fringe benefits: fringe benefits concern the supply of goods and/or services assigned in accordance with market practice and as per applicable legislation. In particular, Executive Directors do not benefit from fringe benefits for that role, but rather as Senior Executives of the Company, with the provision of a company car and insurance policies for the reimbursement of medical expenses, death, permanent invalidity and accident at least of the same level as those guaranteed to the Company's Executives under the National Collective Bargaining Agreements for Industrial Executives policy.

BOARD OF STATUTORY AUDITORS

All the members of the Board of Statutory Auditors receive a fixed fee which appropriately compensates the work and commitment provided by the Statutory Auditors to the Company, and commensurate with the commitment required, the importance of the role covered as well as the size and sector of the Company.

As regards the definition of the remuneration due to the Board of Statutory Auditors, the Shareholders' Meeting of April 23, 2024, resolved to grant the Board - which will remain in office until the approval of the Annual Accounts for the year ending December 31, 2026 - a total remuneration of Euro 140,000.00 (one hundred and forty thousand), of which Euro 60,000.00 (sixty thousand) for the Chairperson of the Board of Statutory Auditors and Euro 40,000.00 (forty thousand) for each of the two Statutory Auditors.

SENIOR EXECUTIVES

The remuneration of Senior Executives is structured so as to focus management on company results and the creation of value.

The remuneration of Senior Executives is composed of:

• a fixed component: this component takes into account the breadth and strategic relevance of the role played and the distinctive subjective characteristics and strategic skills of the beneficiary, in addition to market practice for comparable positions. The amount is sufficient to remunerate the service also in the case of the non-reaching of the performance targets upon which the variable remuneration component is based.

The fixed component of remuneration is supplemented, for FY 2025 only, by an extraordinary bonus determined by the Board of Directors on March 18, 2025.

• a short-term variable component: encourages management to work towards the achievement of annual targets that maximise the Aquafil Group's value, in line with shareholders' interests. The weighting of the short-term variable component ranges between 40% and 50% of fixed remuneration, depending on the strategic importance of the role. The maximum bonus is 125% of the target bonus. The entry threshold includes compliance with financial covenants. For the description of the short-term variable component reference should be made to Paragraph 2.4.

• a long-term variable component: for details regarding the 2023-2027 LTI Plan, please see paragraph 2.5. For those participating, the target bonus is determined as a percentage of fixed remuneration and is set at 50%. The maximum bonus is 125% of the target bonus.

• fringe benefits: fringe benefits concern the supply of goods and/or services assigned in accordance with market practice and as per applicable legislation.

2.4 Short-term variable component

The purpose of the short-term variable component is to encourage management to work towards the achievement of annual targets that maximise the Aquafil Group's value, in line with shareholders' interests.

BENEFICIARIES

The Board of Directors has identified as beneficiaries of the short-term variable component the Chief Executive Officer, the other Executive Directors, the Senior Executives and other figures with strategic importance for the Group.

CALCULATION METHOD

The system provides for the assignment of performance targets that are structured as a percentage of the target incentive amount assigned:

Objectives	Weighting
EBITDA	50%
NFP/EBITDA	25%
ESG target	25%
Total	100%

As for the parameter "ESG targets," reference is made to two sustainability targets (weighting 12.5% each), whose indicators are the same for all beneficiaries of the STI system and which ensure a direct link between the short-term incentive system and the Company's sustainability strategy. Sustainability goals refer to two strategic areas for the Group: proportion of Econyl®-branded product revenues to fibre revenues; and collection of post-consumer waste to create new recycled materials.

For EBITDA and ESG targets, a minimum, target and maximum achievement level are defined:

below the minimum level, the portion of the bonus linked to the relevant parameters does not accrue;
at the minimum level, 50% of the relative bonus accrues;
at the target level, 100% of the relative bonus accrues;
at the maximum level or higher, 125% of the relative bonus accrues;
intermediate levels use a linear interpolation mechanism;
the entry threshold includes compliance with financial covenants.

EBITDA (% vs. target) BONUS (% vs. target) 80% 90% 100% 110% 120% 150% 125% 100% 75% 50% 25% 0%

The STI incentive strategy for the EBITDA performance target is set out below:

For the ratio of NFP to EBITDA, the threshold level is the same as the target level. For this parameter, Aquafil does not consider it permissible to reward a result below the targets set out in the Budget:

below the 100% target level, the portion of the bonus linked to the relevant parameter does not accrue;
at the target level (100%), 100% of the relative bonus accrues;
at the maximum level (110%) or higher, 125% of the relative bonus accrues;
intermediate levels use a linear interpolation mechanism;
the entry threshold includes compliance with financial covenants.

The bonus will be paid in full following approval of the consolidated financial statements for the year to which the short-term variable component relates.

Maximum amount of the Individual Component

The short-term variable component may never exceed a cap equal to 125% of the target bonus.

Other provisions

The annual incentive plan includes a clawback clause which permits the recovery in the 5 years subsequent to issue of amounts issued on the basis of manifestly erroneous or false data. There are also mechanisms in place to deal with good/bad leavers.

2.5 Long-term variable component

Considering the prior opinion of the Appointments and Remuneration Committee and that of the Board of Statutory Auditors, the Board of Directors has approved the introduction of a long-term incentive system (2023-2027 LTI Plan).

In terms of targets, Aquafil's LTI Plan seeks to create maximum alignment between the interests of the beneficiaries and the pursuit of the overriding objective of sustainable value creation for shareholders in the medium/long term.

The 2023-2027 LTI Plan is a rolling monetary plan based around three cycles, each lasting three years (first cycle 2023-2025, second cycle 2024-2026, third cycle 2025-2027). For beneficiaries, after the three-year vesting there is an additional one-year deferral period relating to 50% of the accrued bonus.