Latvijas Gaze

Remuneration Information • Apr 19, 2024

RIG RI A G A

REMUNERATION REPORT FOR 2023

2020

REMUNERATION REPORT

The total management remuneration policy of the Company is determined in such a way as to promote the retention, attraction and motivation of the Company's management to achieve high added value of the Company's joint operations, thus ensuring the Company's strategic development plan. The remuneration policy is in line with the Company's strategy, values and long-term interests with the aim to attract and retain professional, competent senior executives. It is competitive, promotes and rewards performance in accordance with best practice, creating an environment in the Company that is focused on achieving business goals, while providing consistent, understandable remuneration conditions with a long-term perspective. The remuneration of the management takes into account the professional skills of each member of the Management Board, the level of responsibility for the work process and resources, the importance of the decisions made by the person to ensure the Company's operations and individual performance, and the Company's overall financial indicators based on annual results, budget and sales forecasts, sales promotion. Criteria such as the Company's non-financial performance, short-term and long-term goals and measurable performance are also taken into account when determining remuneration.

This Remuneration Report is an integral part of the Annual Report.

The Remuneration Report reflects information on remuneration and other benefits paid to the Management Board and the Council of JSC "Latvijas Gāze" in 2023. The total remuneration corresponds to the remuneration policy of the members of the Management Board and the Council of JSC "Latvijas Gāze", approved by the decision of the Shareholders' Meeting of 30 March 2020 and is available on the Company's websitewww.lg.lv.

Remuneration and other benefits are presented on a cash basis.

The report was approved by the Board of the JSC "Latvijas Gāze" on 19 April 2024, and it is signed on behalf of the Board by:

Aigars Kalvītis Chairman of the Board

Elita Dreimane Member of the Board

Egīls Lapsalis Member of the Board

Remuneration of Council members

Fixed remuneration of the members of the Council includes salary. Council members receive additional payments for their work in the Audit Committee and the Advisory Group.

The term of office of the Council is from 6 September 2021 to 5 September 2024.

The remuneration and other benefits paid to the members of the Council in 2023 are shown below:

		Fixed remuneration		Variable		Fixed /
Name, surname Position	Salary	Audit Commitee	Advisory group	remune ration	Total	variable remunera tion
	EUR' 000	EUR' 000	EUR' 000	EUR' 000	EUR' 000	%
Kirill Seleznev Chairman of the Council	51	-	-	`-	51	100 / -
Juris Savickis Vice-Chairman of the Council Member of the Audit Committee Member of the Advisory group	43	14	14	-	71	100 / -
Oliver Giese Vice-Chairman of the Council	43	-	-	-	43	100 / -
Vitaly Khatkov Member of the Council	34	-	-	-	34	100 / -
Oleg Ivanov Member of the Council	34	-	-	-	34	100 / -
Nicolas Merigo Cook Member of the Council Member of the Advisory group 22 March 2016 – 24 November 2023	31	-	16	-	47	100 / -
Matthias Kolenbach Member of the Council Member of the Advisory group 22 March 2016 – 24 November 2023	34	-	17	-	51	100 / -
Hans-Peter Floren Member of the Council	31	-	-	-	31	100 / -
Elena Mikhaylova Member of the Council	34	-	-	-	34	100 / -
Eriks Atvars Member of the Council 15 June 2021 - 24 November 2023	31	-	-	-	31	100 / -
Jury Ivanov Member of the Council	34	-	-	-	34	100 / -

Remuneration of Board members

Fixed Remuneration of the members of the Board includes salary, as well other benefits and privileges not related to the performance of duties or tasks, such as medical expenses and / or other private insurance, representation expenses, use of Company car or mobile device for private purposes, training, etc.

In the remuneration report, the board shall explain how the vote of the shareholders 'meeting and the shareholders' opinions on the previous remuneration report have been taken into account.

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

• annual bonuses for the Company's results for the previous reporting year;
• separate payments for special achievements or events.

The remuneration of the members of the Board and other benefits paid in 2023 are shown below:

Name, surname	Fixed remuneration		Variable	Total	Fixed /
Position	Salary	Other	remuneration		variable
Term of office		benefits			remuneration
	EUR' 000	EUR' 000	EUR' 000	EUR' 000	%
Aigars Kalvītis Chairman of the Board 16 August 2021 – 15 August 2024	181	32	160	373	57 / 43
Denis Emelianov Vice-Chairman of the Board 16 August 2021– 15 August 2024	156	23	102	281	64 / 36
Inga Āboliņa Member of the Board 17 August 2020 – 12 August 2022	-	-	21	21	- / 100
Elita Dreimane Member of the Board 16 August 2021– 15 August 2024	129	22	100	251	60 / 40
Egīls Lapsalis Member of the Board 1 November 2022 – 15 August 2024	126	19	75	220	66 / 34

Other mandatory disclosures

Remuneration of the Board and Council

	Company 2023	Company 2022	Company 2021	Company 2020
	EUR'000	EUR'000	EUR'000	EUR'000
Fixed remuneration of the Member of the Council	461	461	473	441
Variable remuneration of the Member of the Council	-	-	185	166
Total remuneration of the Member of the Council	461	461	658	607
Fixed remuneration of the Member of the Board	688	637	622	657
Variable remuneration of the Member of the Board	458	240	189	199
Total remuneration of the Member of the Board	1 146	877	811	856

Performance results

	Company 2023	Company 2022	Company 2021	Company 2020	Company 2019
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Revenue from contracts with customers	159 819	702 604	530 224	142 708	265 995
Profit for the period	(56 911)	25 824	74	11 501	19 700

Please see the other results in the Management Report of the Annual Report 2023.

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

	Company 2023	Company 2022	Company 2021	Company 2020
	EUR'000	EUR'000	EUR'000	EUR'000
Salary	3 228	3 567	2 972	2 770
Average number of employees	105	107	108	104
Average remuneration	31	33	28	27

The salary is presented according to the accrual method.

Remuneration received from another company belonging to the same group within the meaning of the Law on Annual Accounts and Consolidated Annual Accounts

None

Number of shares and share options granted and offered and key terms and conditions of the exercise of the options, including the price and date of their exercise and their changes (if any)

None

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

None

Temporary derogations applied, including an explanation of the nature of the exceptional case and an indication of the specific components of the remuneration policy to which the temporary derogation applies

None

In the remuneration report, the Management Board shall explain how the vote of the shareholders' meeting and the views of the shareholders on the previous remuneration report have been taken into account.

The Remuneration Report for 2022 was approved at the shareholders' meeting on June 19, 2023.