Ditton pievadkezu rupnica

Annual Report • Jul 13, 2023

Joint-stock company DITTON PIEVADĶĒŽU RŪPNĪCA Reg.No.40003030187

Management Board and Council Remuneration Report

For the year 2022

(Annex to the Annual Report 2022)

Daugavpils 2023

CONTENT

INTRODUCTION……………………………………………………………………………………3
REMUNERATION OF THE MANAGEMENT BOARD AND COUNCIL MEMBERS ………4
FINAL INFORMATION…………………………………………………………………………6

INTRODUCTION

Remuneration report of the Management Board and Council members of the joint-stock company Ditton pievadķēžu rūpnīca (hereinafter – Company) for the year 2022 has been prepared in accordance with the Management Board and Council Remuneration Policy approved by the decision of the Shareholders'meeting on 18 June 2020, which was developed basing on the provisions of Directive (EU) 2017/828 of the European Parliament referring to the promotion of involvement of the long-term shareholders and Article 59.³ of the Law on the Financial Instruments Market of the Republic of Latvia implementing the said Directive.

The Remuneration Report has been prepared by the Management Board of the Company and reviewed by the Council of the Company. The Remuneration Report is audited by a sworn auditor, and it is reviewed and approved at the shareholders' meeting together with other components of the annual report.

The Remuneration Report is published together with the audited Annual Report of the Company as a separate part of the Annual Report in Latvian and English on The Central Storage of Regulated Information of the Financial and Capital Market Commission, on the website of the stock exchange http://www.nasdaqbaltic.com, as well asi n the website of the Company www.dpr.lv.

The fiancial result of the Company in 2022 was a profit of EUR 47 186.

Net turnover of the Company in 2022 was EUR 4 451 618.

The average wages in the Company in 2022 was EUR 792/or EUR 9 504 per year/.

Council and Management Reports on the operating performance of the Company in 2022, as well as analysis of the risks are given in th eappropriate sections of the Annual Report.

REMUNERATION OF THE MANAGEMENT BOARD AND THE COUNCIL

1. Remuneration Policy of the Management Board and the Council members includes the following types of payments:

• (a) Fixed part (monthly fee in form of wages or compensations for performance of duties of the Management Board or Council member);
• (b) Variable part (share of profits, the payment of which is approved by the shareholders' meeting);
• (c) Extraordinary items or other payments (other payments according to the Remuneration Policy of the Management Board and the Council members, including from other company of the same group within the meaning of the Law on Annual Accounts and Consolidated Annual Accounts).

2. Remuneration of the Council members

First name, last name,	Total Remuneration
position	Fixed part	Variable part	Other payments	Total
Boriss Matvejevs Chairman of the Council, Chairman of the Audit Committee /till 1 December 2022/	EUR 19 058.13 /48%/	-	EUR 26 450 /52 %/	EUR 45 508.13
Genādijs Zavadskis Council member, Audit committee member	EUR 7 800 /22%/	-	EUR 28 783.97 /78 %/	EUR 36 583.97
Aleksandrs Sokolovs Council member, Audit committee member /since 18 June 2020/	-	-	-	-
Oto Dzenis Council member, Audit committee member /till 1 December 2022/	-	-	-	-
Total in 2022	EUR 26 858.13 /33%/	-	EUR 55 233.97 /67 %/	EUR 82 092.10

3. Remuneration of the Management Board members

First name, last name,	Total Remuneration
position	Fixed part	Variable part	Other payments	Total
Rolands Zarāns	EUR 35 364.82	-	-	EUR 35 364.82
Chairman of the Board	/100 %/
Total in 2022	EUR 35 364.82		EUR 5 588.73
	/86%/	-	/14 %/	EUR 40 954

4. Total Remuneration of the Management Board and Council members

Institutions of the Company		Total
	Fixed part /EUR/	Variable part /EUR/	Other payments /EUR/	/EUR/
Council	26 858.13	-	55 233.97	82 092.10
Management Board	35 364.82	-	5 588.73	40 954
Total in 2022	62 223	-	60 823	123 046
Full-time employee of an equivalent unit, average	12 156

5. Comparison of remuneration (fixed and variable part) of the Management Board and Council members for the year 2021 and 2022

	Remuneration /fixed and variable part/
Institutions of the Company	In 2020 /EUR/	In 2021 /EUR/	In 2022 /EUR/	Avarage remuneration for the years 2021 and 2022 /EUR/
Council	26 916	28 500	26 858	27 679
Management Board	40 598	39 369	35 365	37 367
Total	67 514	67 869	62 223	65 046
Full-time employee of an equivalent unit, average	11 411	12 156	10 371	11 264

FINAL INFORMATION

Remuneration of the Management Board and Council members corresponds to the Remuneration Policy approved by the shareholders' meeting.

Payment (of the variable part and/or other payments) criteria, which are directly connected with Company's performance criteria, were not applied by determining the remuneration of the Management Board and Council in 2022.

The Company is not part of the group within the meaning of the Law on Annual Accounts and Consolidated Annual Accounts, accordingly, no remuneration was received from other companies.

No shares or share options were granted or offered.

There were no exceptional cases of temporary derogations from the remuneration policy and the circumstances when the Company would exercise the right to claim damages from the Council and the Management Board members.

The tables above demonstrate the gross remuneration (pre tax renumeration).

Chairman of the Management Board

______________________________ R. Zarāns