SAF Tehnika

Remuneration Information • Oct 31, 2024

SAF Tehnika JSC

Remuneration Report

for the year ended June 30, 2024

Introduction

The remuneration report of the Board and Council of the joint stock company "SAF Tehnika" (hereinafter referred to as the Company) for the year ended June 30, 2024, has been prepared in accordance with the remuneration policy of the Board and Council, which was developed in accordance with the requirements of Section D Chapter III¹ of the Financial Instruments Market Law, which introduced Directive (EU) 2017/828 of the European Parliament and of the Council in the Republic of Latvia as regards the encouragement of long-term shareholder engagement.

The remuneration report has been drawn up by the Board of the Company. The remuneration report is checked by a sworn auditor and is reviewed and approved at the shareholders' meeting together with other components of the Company's annual report.

1. Remuneration of the Company's Board and Council members is based on the following basic principles:

1.1. Members of the Board and Council of the Company do not receive special remuneration for the performance of their duties as members of the Board or Council.

1.2. For members of the Board/Council who have an employment relationship with the Company in any other position, remuneration is included in the salary. The right to reclaim or defer compensation is not provided for. If a member of the Board/Council has an employment or other civil relationship with the Company, remuneration includes salary and other payments or benefits to a member of the Board/Council. The part of remuneration resulting from employment relationship or other civil relations may vary, for example, in case of granting bonuses, extras, health insurance, etc.

The determination of the management remuneration takes into account the professional skills of each member of the Board, the level of responsibility for the work process and resources, as well as the Company's overall financial indicators based on annual results, budget and sales forecasts, sales promotion.

The remuneration report includes information for the reporting year, as well as comparative information for the year ended on June 30, 2023, and for some information comparative data for the previous three years are provided.

The remuneration report for the reporting year ending on 30 June, 2023 was approved at the shareholder's meeting on 13 December 2023. The decision was adopted, with 1 923 951 votes "in favour", 0 votes "against", 0 votes "abstentions".

Remuneration of members of the Board

The fixed remuneration of the members of the Board includes the salary and change in accruals for unused vacations and may include other benefits and privileges not related to the performance of job duties or tasks, such as health insurance, private use of the Company's car or mobile communication device within certain limits, as well as subsistence (food) allowance in accordance with the concluded collective agreement, etc.

Variable remuneration may consist of the following costs in monetary form:

• annual bonuses based on the results of the previous reporting year of the Company;
• individual payouts for special achievements or events.

Remuneration of members of the Council

The fixed remuneration of the members of the Council includes the salary and change in accruals for unused vacations and may include other benefits and privileges not related to the performance of job duties or tasks, such as health insurance, private use of the Company's car or mobile communication device within certain limits, as well as subsistence (food) allowance in accordance with the concluded collective agreement, etc.

Members of the Council do not receive additional payments for work on the Audit Committee. Members of the Council who do not have an employment relationship with the Company do not receive special remuneration for performing the duties of members of the Council.

Term of office of the Council is from November 20, 2021 to November 20, 2024.

Remuneration of members of the Board and Council and other benefits paid or payable for the financial year 2023/2024 is presented below:

		Fixed Remuneration			Variable Total
Name, Position	Salary EUR	Other Benefits EUR	Total EUR	Remune ration EUR	Remune ration EUR	Fixed / Variable Remuneration %
Normunds Bergs Chairman of the Board	83 805	2 849	86 654	-	86 654	100%	0%
Didzis Liepkalns Chief Technical Officer, Member of the Board	52 902	1 369	54 271	-	54 271	100%	0%
Zane Jozepa Head of Finance and Administrative Department, Member of the Board	65 060	7 183	72 243	-	72 243	100%	0%
Jānis Bergs Vice President of Sales and Marketing, Member of the Board	2 644	600	3 244	-	3 244	100%	0%
Jānis Bergs Vice President of Sales and Marketing, Member of the Board (another company of the Group)	197 065	28 836	225 901	-	225 901	100%	0%
Total Board remuneration	401 476	40 837	442 313	-	442 313	100%	0%
Juris Ziema Head of Production, Chairman of the Council Andrejs Grišāns Head of Production, Vice Chairman of the Council	57 926 35 856	5 832 4 609	63 758 40 465	- -	63 758 40 465	100% 100%	0% 0%
Aira Loite Director of Digital Transfor mation, Member of the Council	57 794	1 136	58 930	-	58 930	100%	0%
Total Council remuneration	151 576	11 577	163 153	-	163 153	100%	0%

Remuneration of members of the Board and Council and other benefits paid or payable for the financial year 2022/2023 is presented below:

		Fixed Remuneration		Variable Total
Name, Position	Salary EUR	Other Benefits EUR	Total EUR	Remune ration EUR	Remune ration EUR	Fixed / Variable Remuneration %
Normunds Bergs Chairman of the Board	85 420	4 095	89 515	23 590	113 105	79%	21%
Didzis Liepkalns Chief Technical Officer, Member of the Board	54 837	1 237	56 074	15 348	71 422	79%	21%
Zane Jozepa Head of Finance and Administrative Department, Member of the Board	67 656	7 427	75 083	19 460	94 543	79%	21%
Jānis Bergs Vice President of Sales and Marketing, Member of the Board	2 108	734	2 842	-	2 842	100%	0%
Jānis Bergs Vice President of Sales and Marketing, Member of the Board (another company of the Group)	178 353	26 869	205 222	164 797	370 019	55%	45%
Total Board remuneration	388 374	40 362	428 736	223 195	651 931	66%	34%
Juris Ziema Head of Production, Chairman of the Council Andrejs Grišāns	62 227	6 631	68 858	17 605	86 463	80%	20%
Head of Production, Vice Chairman of the Council	44 081	4 552	48 633	12 752	61 385	79%	21%
Aira Loite Director of Digital Transfor mation, Member of the Council	60 837	1 054	61 891	16 583	78 474	79%	21%
Total Council remuneration	167 145	12 237	179 382	46 940	226 322	79%	21%

Average remuneration of full-time employees (excluding members of the Board and Council)

	2023/2024	2022/2023	2021/2022	2020/2021
	EUR	EUR	EUR	EUR
Salary	6 465 968	7 441 444	6 043 483	4 906 009
Average number of employees	211	205	184	179
Average remuneration per employee	30 693	36 344	32 185	27 433

Salary is presented by the accrual method.

Management remuneration

	2023/2024	2022/2023	2021/2022	2020/2021
	EUR	EUR	EUR	EUR
Fixed remuneration of members of the Council	163 153	179 382	165 800	98 574
Variable remuneration of Members of the Council	-	46 940	43 766	26 302
Total remuneration of members of the Council	163 153	226 322	209 566	124 876
Fixed remuneration of members of the Management Board	442 313	428 736	385 905	306 955
Variable remuneration of members of the Management Board	-	223 195	334 231	651 661
Total remuneration of members of the Management Board	442 313	651 931	720 136	958 616

Performance results

	2023/2024	2022/2023	2021/2022	2020/2021
	EUR	EUR	EUR	EUR
Revenue from contracts with customers	23 258 653	32 040 313	29 135 280	20 983 223
Profit/(loss) before tax	(1 339 282)	3 622 335	5 803 336	3 176 647
Profit/(loss) of the reporting year	(1 339 282)	3 117 404	5 754 239	3 176 647

Please see other performance results in the respective year's annual report.

Number of shares and share options granted and offered and the main conditions for the use of options, including the price and date of their use, and their changes (if any)

None

Information on cases where a variable part of remuneration has been reclaimed

None

Temporary derogations applied, including an explanation of the nature of the exception and an indication of the specific components of the remuneration policy for which the temporary derogation has been applied

None