JSW S.A.

Remuneration Information • Jul 7, 2023

Position of the JSW S.A. Management Board and Supervisory Board on a shareholder's request for information about the company pursuant to Article 428 §6 of the Commercial Company Code

On 8 February 2023, the JSW S.A. Management Board signed an Agreement with the Representative Trade Union Organizations pursuant to which the rate of increase of the salary fund in 2023 was set at 15.4% (which the Company reported in Current Report No. 3/2023).

Currently, at the request of the Representative Trade Union Organizations of JSW S.A., talks are being held between the JSW S.A. Management Board and the JSW S.A. Representative Trade Union Organizations on the implementation of the provisions of the above Salary Agreement.

On 14 June 2023, the first meeting on this issue was held.

The parties have presented their positions and talks will continue.

During the meeting with the Representative Trade Union Organizations, no arrangements were made regarding the form of implementation of the rate of increase of the salary fund for JSW S.A. employees in 2023, agreed upon in the aforementioned Agreement. Also, no arrangements or declarations were made regarding the amount of the possible one-off bonus which the trade unions requested in the letter of 05 June 2023.

The discussions under way concern the payment of a possible one-off bonus for employees, not the payment of a bonus from the profit generated last year. Bonuses and distinctions at work are a form of employee appreciation.

While incurring a financial obligation with the PFR, the company informed shareholders of the restrictions on dividend payments resulting from this fact (Current Reports No. 40/2020, 41/2020).

The company still has an obligation to the PFR. This clearly restricted the Company's Management Board in its ability to recommend dividend payments, as this would mean violating the terms of the agreements signed with the PFR in 2020. The loans obtained from the PFR relate to state aid and the Company's Management Board is obliged to respect all provisions contained in the signed agreements.

In addition please be informed that according to Item 3.10a) of the JSW S.A. Shareholder Meeting Bylaws, an Extraordinary Shareholder Meeting may be convened by the Management Board on its own initiative or at the request of a shareholder representing at least 1/20 of the share capital.