ALTIA — Board/Management Information 2020

Feb 13, 2020

Altia Plc: New earning period in the share-based long-term incentive scheme for the management and key employees of Altia

Altia Plc: New earning period in the share-based long-term incentive scheme for the management and key employees of Altia

Altia Plc  Stock Exchange Release  13 February 2020 at 8:35 EET

New earning period in the share-based long-term incentive scheme for the
management and key employees of Altia

The Board of Directors of Altia Plc has decided on a new earning period in the
share-based long-term incentive scheme for the management and key employees of
Altia Group. The incentive scheme was originally established and announced in
February 2019.

The objectives of the share-based long-term incentive scheme are to align the
interests of Altia’ management and key employees with those of the Company’s
shareholders and, thus, to promote shareholder value creation in the long term,
and to commit the management to achieving Altia’ strategic targets as well as
the retention of Altia’ valuable key resources.

It consists of annually commencing individual performance share plans (PSP),
each with a three-year performance period, followed by the payment of the
potentially earned share reward. The commencement of each individual plan is
subject to a separate Board approval.

The second plan

The second plan within the structure, PSP 2020–2022, commences as of the
beginning of 2020 and the potential share reward thereunder will be paid in the
spring 2023 provided that the performance targets set by the Board of Directors
are achieved. The potential reward will be paid in listed shares of Altia.

The performance targets based on which the potential share reward under PSP
2020–2022 will be paid are the relative total shareholder return of Altia’s
share and earnings per share.

Eligible to participate in PSP 2020–2022 are approximately 25 individuals.

If all the performance targets set for PSP 2020–2022 are fully achieved, the
aggregate maximum number of shares to be paid based on this second plan is
approximately 271 000 shares. This number of shares represents a gross earning,
from which the applicable payroll tax is withheld and the remaining net value is
paid to the participants in shares.

The aggregate gross value of this second plan, estimated based on the average
share price of the last trading day preceding the date hereof, is approximately
EUR 2.3 million.

The combined amount of variable compensation paid to an individual participant
any given year, including the long-term incentive scheme and the short-term
incentive scheme, may not exceed 120% of the individual' annual gross base
salary.

If the individual’s employment with Altia Group terminates before the payment
date of the share reward, the individual is, as a main rule, not entitled to any
reward based on the plan.

Other terms

Altia applies a share ownership recommendation to the members of its Executive
Management Team. According to this recommendation each member of the Executive
Management Team is expected to retain in his/her ownership at least half of the
net shares received under the share-based incentive schemes of Altia until the
value of his/her share ownership in Altia corresponds to at least his/her annual
gross base salary.

The Board of Directors anticipates that no new shares will be issued based on
the share-based incentive scheme and that the scheme will, therefore, have no
dilutive effect on the registered number of the Company's shares.

ALTIA PLC

Board of Directors

Further information:

Sanna Suvanto-Harsaae, Chairman of Altia’s Board of Directors and Chairman of
the Board’s HR Committee

Contacts:

Merja Kaukonen, Executive Assistant, tel. +358 40 5400592

Distribution:

Nasdaq Helsinki Ltd

Principal media

www.altiagroup.com

Altia is a leading Nordic alcoholic beverage brand company operating in the
wines and spirits markets in the Nordic and Baltic countries. Altia wants
to support a development of a modern, responsible Nordic drinking
culture. Altia’s key exports brands are Koskenkorva, O.P. Anderson and Larsen.
Other iconic Nordic brands are Chill Out, Blossa, Xanté, Jaloviina, Leijona,
Explorer and Grönstedts. Altia’s net sales in 2019 were EUR 359.6 million and
the company employs about 650 professionals. Altia’s shares are listed on Nasdaq
Helsinki.  www.altiagroup.com (https://emea01.safelinks.protection.outlook.com/?u
rl=http%3A%2F%2Fwww.altiagroup.com%2F&data=02%7C01%7Ctua.stenius
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I%2Bk%2FEosQeClTugAvHBM%3D&reserved=0).