Decision made regarding the long-term promotion of the managers

Decision made regarding the long-term promotion of the managers of AB “Ignitis grupė” group of companies with share options programme

AB “Ignitis grupė” (hereinafter – the Company) informs that on 4 December 2020 the Supervisory Board of the Company approved the long-term strategic goals and their indicators for 2020–2023, their achievement evaluation criteria and the maximum number of shares offered to the managers related to the share options programme (hereinafter – the Programme) for the long-term promotion of the managers of the Company’s group of companies (hereinafter – the Group companies; the Group).

The Programme approved in accordance with good remuneration and promotion practices of listed companies in order to increase loyalty, pursuit of long-term sustainable results, motivation to increase the share value growth. The resolve regarding the Programme was presented in the Prospectus of the Initial Public Offering (IPO) as well as in the AB “Ignitis grupė“ Share Allocation Rules (hereinafter – the Rules), which were approved on 16 September 2020 by the shareholder, published on the website of the Company (https://ignitisgrupe.lt/en/management-bodies).

The Programme of long-term promotion of the managers of the Group with share options will apply to nine key managers of the Group: the Board members of the Company and the CEO of four companies of the Group (ESO, Ignitis, Ignitis Gamyba and Ignitis Renewables). The total maximum number of shares offered for the period of 2020–2023 is 9497.

The Programme determines the share allocation in 2024, after the long-term strategic goals (indicators) related to the strategic plan of the Company for 2020–2023 are achieved.

After the retention period for the share options, the managers will be able to choose implement their right to own shares of the Group. The exact number of shares will be determined (calculated) considering the achievement percentage of long-term strategic goals and their indicators for the period of 2020–2023:

	Goal	Value	Minimum threshold for reaching the indicator	Indicator, 100% achievement
1	The total shareholder return* (TSR) is compared to the Eurostoxx Utilities average	40%	70% of the Eurostoxx Utilities average, assessed as a 70% achievement	Eurostoxx Utilities average
2	Adjusted EBITDA for 2023	30%	Achievement of the determined amount, Eur, assessed as a 70% achievement	Determined amount, Eur
3	Operational “green MW”	20%	1.6 GW
4	Preparation of a CO2 reduction plan and achievement of its objectives	10%	100% plan execution

The key managers will enter into Option Agreements in 2020. The Company will announce the concluded Option Agreements in a separate notice.

For more information please contact:

Artūras Ketlerius
Head of Public Relations at Ignitis Group
arturas.ketlerius@ignitis.lt
+370 620 76076