2023年梅賽德斯奔馳IR報(bào)告-業(yè)務(wù)及戰(zhàn)略更新展望-2023-04-企業(yè)研究

GovernancePresentation

AnnualGeneralMeeting2023

Mercedes-BenzGroupAG

AGENDA

Review2022&strategy

AnnualGeneralMeeting2023

ESGGovernance

SupervisoryBoard

Remunerationsystem

Mercedes-Benz

Vans

Revenue:

Employees:

€17.2billion19,137

Mercedes-Benz

Mobility

Revenue:

Employees:

€27.0

billion9,850

Mercedes-BenzBank

Meroedespay

Mercedes-BenzGroupCorporateProfile

Mercedes-BenzGroupAG*

Revenue:

€150.0

billion

Employees:

168,797**

Revenue:€111.6billion

Employees:135,388

Mercedes

Mercedes-BenzCars

*figuresFY2022**incl.centralfunctions&service4,422employees

3

Review2022

Strategy:Sharpenedfocusofbusinessmodel&productportfolio

(EconomicsofDesire)andstrategicESGactivities(ESGConference;CO2lifecycletarget2030)

Diligentstrategyexecutioninachallengingenvironment

Performance:Demonstratedresilienceinchallenging

environment,vigilancetowardsmacroeconomic&geopoliticaldevelopments

Products:Shareofelectricvehiclesmorethandoubled;StartofsalesEQEandEQSSUV;WorldPremiereEQESUV

Profitability:Sustaininghighmarginswithhealthymix

andpricing

4

GovernancePresentationAGM2023

Mercedes-BenzGroup

Keyfigures*

Revenue

inbillioneuros

EBITadj.

inbillioneuros

FreeCashFlow(IB)

inbillioneuros

NetIndustrialLiquidity

inbillioneuros

EBIT

inbillioneuros

+12%

+28%

+20%

+27%

16.0

20.5

20.7

17.2

26.6

150.0

+3%

21.0

133.9

7.98.1

20212022

20212022

20212022

2021202220212022

*2021figurescontinuingoperationsonly;allfigurespreliminaryandunaudited

GovernancePresentationAGM20235

Group

GovernancePresentationAGM2023

6

Mercedes-Benz

Sharebuyback

Upto€4billion*

Max.2years

StartingMarch2023

*notincludingincidentalcosts

SBTi*

SBTi*

Sustainablebusinessstrategy

Ambition2039-Ourcommitmenttonetcarbon-neutrality

SupplychainProduction&logisticsWell-to-tankTank-to-wheelEnd-of-life

SBTi*

2020:49.7tCO2emissionspervehicle,Mercedes-BenzCars

2022:47.8tCO2emissionspervehicle,Mercedes-BenzCars

2030:AtleasthalvelifecycleCO2emissionspercarvs.2020

2039:Netcarbon-neutralityalongtheentirevaluechaininthenewvehiclefleet

*SBTi-Science-basedtargetinitiative;Mercedes-BenzAGtargetsforscope1and2aswellasscope3(usephase)emissionsapprovedin2019

7

GovernancePresentationAGM2023

Mercedes-BenzGroupStrategicpriorities2023

Safeguardouroperatingoptimum

Continue

scalingBEVs

Future-proof

supplychains

Furtherupgrade

customer

experience

Maintain

cost

discipline

GovernancePresentationAGM2023

8

AGENDA

Review2022&strategy

AnnualGeneralMeeting2023

ESGGovernance

SupervisoryBoard

Remunerationsystem

AnnualGeneralMeeting(AGM)2023

07

ResolutiononremunerationforSupervisoryBoardmembers

08

ResolutionontheapprovaloftheremunerationsystemfortheBoardofManagement

Resolutionontheapprovaloftheremunerationreportforfinancialyear2022

Resolutiononthecreationofanew

ApprovedCapital2023

ResolutiontoaddanauthorizationfortheBoardofManagementtoholdavirtualshareholders’meeting

ResolutiononanamendmenttoenableSupervisory

BoardmemberstoparticipateinavirtualShareholders’Meetingbymeansofvideoandaudiotransmission

09

10

11

12

06

Agenda

01

02

03

04

05

Presentationoftheadoptedannualfinancial

statements–withoutvoting

Resolutionontheappropriationofdistributable

profit

ResolutiononratificationofBoardofManagement

members’actionsinfinancialyear2022

ResolutiononratificationofSupervisoryBoard

members‘a(chǎn)ctionsinfinancialyear2022

Resolutionontheappointmentoftheauditorfor

2023andnewauditorfor2024

ResolutiononelectionstotheSupervisoryBoard–

StefanPierer

GovernancePresentationAGM202310

Shareholders’righttospeakliveonstage

Shareholders’righttoasklivequestions

Shareholders’informationright

Shareholders’righttosubmitmotionsliveonstage

Germanlegislationtransferstheshareholderrightsgrantedinthephysicalformattothevirtualformatwithout

compromise.

Itisliterallya“reproduction”ofphysicalshareholders’

meetinginavirtualspace.

AnnualGeneralMeeting(AGM)2023

GermanlegislationonvirtualGeneralMeetingssafeguardsshareholderrights

PhysicalGeneralMeetingVirtualGeneralMeeting2023

Shareholders’righttospeaklivebywayofvideocommunication

Shareholders’righttoasklivequestions

Shareholders’informationrightasinphysicalGeneralMeeting

Shareholders’righttosubmitmotionslivebywayofvideocommunication

Shareholders’righttosubmitstatementsinadvanceoftheGeneralMeetingthatneedtobemadeaccessible

Increasedattendanceratesbydigitalaccess

Significantlymoresustainableand

protectinghealth&safety

+

+

+

GovernancePresentationAGM202311

+4%

20212022

2022

2021

2022

*2021figuresexcl.deconsolidationresult

GovernancePresentationAGM202312

Mercedes-BenzGroup

Dividend

Netprofit

inbillioneuros

Dividend

proposedineuros

Earningspershare

ineuros

+5%

14.8

14.2*

13.55

12.89*

+4%

5.05.2

€0.7

DT&B

4.3

2021

AGENDA

Review2022&strategy

AnnualGeneralMeeting2023

ESGGovernance

SupervisoryBoard

Remunerationsystem

x

sustainability

AnnualSustainabilityDialogues,ESG

Conference

Regularmaterialityassessment

AdvisoryBoardforIntegrity&Sustainability

Comprehensivereporting**

ESGgovernance

ESGintegratedincorporategovernancestructuresincl.new

recommendationsofGermanCorporateGovernancecode

Board-level

steeringcommittee

Sustainability-related

transformation

targetsincludedin

executive

compensation

Sustainability

expertise/competence

addedtothe

requirementsprofileoftheSupervisoryBoard

Sustainabilityaspects

integratedintorisk

managementprocess

andinternalcontrol

system/CMS*

HumanRightsOfficer

appointedtorespect

andupholdhuman

rights

Sustainabilityaspects

anchoredinstrategic

decisionmaking

processes

forgroup-wide

sustainability

management

?

*CMS–ComplianceManagementSystem

**e.g.SustainabilityReport,TCFDReport,SASBReport,Non-financialdeclaration,ClimatePolicyReport,RawMaterialsReport,GreenFinanceInvestorReportGovernancePresentationAGM202314

ESGgovernance

SupervisoryBoard’sESGoversight

TheSupervisoryBoard’smonitoringandadvisoryactivitiesrelateinparticulartosustainabilityissuesassociatedwiththeESGdimensions.

Atregularintervals,theSupervisoryBoardobtainsreportsfromtheBoardofManagementonthestatusofimplementationoftheintegratedsustainablecorporatestrategyandalsoexaminestherisksandopportunitiesfortheCompanythatresultfromsocialandenvironmentalfactorsand,increasingly,theecologicalandsocialeffectsoftheCompany’sbusinessactivities.

June2022

AuditCommitteediscussed

aspectsoftheriskmanagementsystemandparticularlyaddressedthefurtherintegrationofESG

topicsandtheaccompanying

trainingmeasurestoincreaseESGawareness.Themeetingalso

focusedonthereportonESGandsustainabilityreportingactivities,includingtherequirementsoftheEUtaxonomy.

September2022

TheSupervisoryBoardandthe

BoardofManagementalso

discussedsocialchallengesand

corporateresponsibilityintheareaofsocialjustice.Bothbodies

agreedthatsocialresponsibilityis

animportantaspectwithinthe“S”inESGandMercedes-Benzcan

contributetosolvingsocialproblems.

July2022

TheSupervisoryBoardalsodealtindetailwiththeESGand

sustainabilityissuesrelevanttoMercedes-Benzandtheir

embeddinginthecompany.

GovernancePresentationAGM2023

15

TheSupervisoryBoardalsoaddressessustainabilityreportingintheformoftheNon-FinancialDeclarationintheCombinedManagementReport.

ESGgovernance

SupervisoryBoard’sESGoversight

SupervisoryBoard’sexpertiseintheareaofsustainability/ESG:

DamePollyCourticecontributestheexpertiseshehasgainedinESGmattersasaresultofhavingservedformanyyearsasDirectoroftheUniversityofCambridgeInstitutefor

SustainabilityLeadership.

Environment

Social

Governance

DrMartinBrudermüller,Benvan

DamePollyCourticeandin

Withregardtogovernance(G),

BeurdenandTimotheusH?ttgesin

particulartheemployee

OlafKochandRomanRomanowski

particularcontributetheir

representativesontheSupervisory

contributetheexpertisetheyhave

knowledgeofandexperiencewith

Boardpossessexpertiseinthe

gainedthroughouttheir

environmental(E)issues.

fieldsthatrelatetothesocial(S)

professionalcareers

Allofthemdealextensivelywithsustainabilityissues(inparticular

component.

thoserelatingtoclimate

protectionanddecarbonization)at

thecompaniesinwhichtheyserve

aschairmanoftheboardof

management.

GovernancePresentationAGM2023

16

Compliance&integrity

ChiefComplianceOfficer

ChiefComplianceOfficer(CCO)reportsdirectlytotheBoard

MemberIntegrity&LegalAffairs

CCOreportsdirectlytotheAuditCommitteeoftheSupervisory

BoardandregularlytotheBoardofManagement

CCOisresponsibleforthe

anticipationofComplianceRisksandmanagementofCompliancePrograms

CCOalsohastheroleof

HumanRightsOfficer

Monitoring&

Improvement

Objectives

Communication&Training

Values

Anti-Corruption*

AntiFinancialCrime

Organization

Antitrust*

CMS

DataCompliance

SocialCompliance

Program

technicalCompliance*

Risks

Complianceandintegrityfirmlyembeddedinourcorporate

culturesupportedbyourChiefComplianceOfficer

Valuebasedcompliancemanagement

?Value-basedcomplianceisfirmlyembeddedinourcorporateculture

?Employeesareexpectedtocomplywithlaws,regulationsandvoluntaryself-commitmentsasdefinedinabindingforminourIntegrityCode

?OurComplianceManagement

System(CMS)aimstopromote

compliancewithlawsandpolicies,tominimizemisconduct,topreventdamagestothecompanyandto

fosteracultureofintegrity

?OurCMSisasystematic,flexiblesystemthatcanbeadoptedtomultiplecompliancetopics

*ExternalauditaccordingtoPS980oftheInstituteofPublicAuditorssuccessfullycompleted(fortechnicalcompliancewithfocusonemissions).GovernancePresentationAGM202317

Dieselemissionsissues

SupervisoryBoard

?Duringthelastbusinessyear,asinpreviousyears,theSupervisoryBoardpaidcloseattentiontothedieselemissionsissue.

?EnsuringcompliancewiththeprovisionsofthesettlementagreeduponwithU.S.authoritiesintheyear2020lieswithin

thecompany’sownresponsibilityandinlieuofanexternalmonitor,itismonitoredbytheSupervisoryBoardandits

CommitteeforLegalAffairsonanongoingbasis.Inaregulatoryenvironmentsubjecttoconstantchange,thecompanyiscontinuouslyadvancingitsstate-of-the-arttechnicalcompliancemanagementsysteminlinewithinternalpoliciesandthesettlementwithU.S.authorities,takingnewtechnologiesintoconsiderationaswellasreviewingthesystem’sefficacyonanannualbasis.

?MonitoredbytheSupervisoryBoardandconsistentwiththestrategyjointlyapproved,thecompanypursuescivilandadministrativeproceedingsstillongoinginGermanyandothercountries.

?TheSupervisoryBoardisexaminingapotentialliabilityofcurrentandformerMembersoftheBoardofManagement.ItisanalysingwhatledtothedieselemissionsissueandwhetherappropriatemeasureswereomittedatManagementBoardlevel.TheSupervisoryBoard’sexternallegalcounselregularlyreportsontheprogressoftheassessment.Thefactsoftheissuecontinuetobeanalysedindetail.TheSupervisoryBoardhasdeterminedthatpotentialclaimswillnotbesubjecttothestatuteoflimitationsinthenearfuture.

GovernancePresentationAGM202318

Antitrustmatters

SupervisoryBoard

?AntitrustmatterscontinuetobeanimportantissuefortheSupervisoryBoard.

?FollowingtheconclusionoftheEuropeanCommission’sproceedingrelatingtoanticompetitiveconductwithregardto

exhaustaftertreatmentsystemsforcarswithdieselengines(SCR-selectivecatalyticreduction)inJuly2021,recentlytheSouthKoreanantitrustauthoritymadeadecisiononthistopic.Duetothecooperationwiththerespectiveauthorities,thecompanydoesnothavetopayafineinanyofthoseproceedings.

?Alsointheframeoffurtherantitrustauthorityinvestigationsregardingthedisposalofend-of-lifevehicles,thecompanyhasbeencooperatingextensivelywiththeEuropeanCommissionandtheBritishantitrustauthorityCMA(CompetitionandMarketsAuthority)asleniencyapplicantfromanearlystageanddoesnotexpecttoreceiveafineinthismatter.

?Withregardtoallmentionedproceedings,theSupervisoryBoardisstillreviewingpotentialcompensationclaimsagainstcurrentorformermembersoftheBoardofManagement.ThesameholdstrueforpotentialclaimswithregardtothetrucksproceedingsalreadyconcludedbytheEuropeanCommission;thosepotentialclaimshaveremainedwiththecompany

irrespectiveofthespin-offofthetruckandbusbusiness.

?TheSupervisoryBoardistherebyfullyperformingitssupervisiontasksunderstockcorporationlaw.ThiswasconfirmedagaininMarch2023inanamendedexpertopinionbyProfessorDrMathiasHabersack.

GovernancePresentationAGM202319

AGENDA

Review2022&strategy

AnnualGeneralMeeting2023

ESGGovernance

SupervisoryBoard

Remunerationsystem

Representative

SupervisoryBoard

Sustainablerefreshmentoftheboardandafouryearselectiontermforshareholderrepresentatives

Shareholder

20082009201020112012201320142015201620172018201920202021202220232024202520262027

DrBerndPischetsrieder

SariBaldauf

TimotheusH?ttges

BenvanBeurden

DrMartinBrudermüller

ElizabethCentoni

ProfDrHeleneSvahn

OlafKoch

DameVeronicaAnne(?Polly“)Courtice

MarcoGobbetti

StefanPierer*

AGMelection

Yearofelection

Yearoftermination

GovernancePresentationAGM2023

21

*SubjecttoelectionbyAGM

candidate

Supervisory

Board

new

and

experienced

industryexpert

Entrepreneur

StefanPierer

Male

1956

Austrian

Independent

Othermandates

PanklAG,Kapfenberg,Austria*

(notlisted–Chairman)

PanklRacingSystemsAG,Kapfenberg,Austria*(notlisted–Chairman)

SHWAG,Aalen,Germany*(listed)

Schw?bischeHüttenwerkeAutomotiveGmbH,Aalen,Germany*(notlisted)

OberbankAG,Linz,Austria(listed)

*Group

IndustrieAG

mandateofPierer

22

GovernancePresentationAGM2023

Shareholderrepresentatives

Gender

40%

women

Internationality***

60%

non-German

Tenure**Independence

100%

independent

?3,9

8/10<4years

Qualificationprofileandboarddiversityensureseffective

supervision(beforeAGM2023)

Competencies/ExperienceSelectedKeyFigures

10shareholderrepresentatives

shareof10shareholderrepresentatives

Finance(e.g.Accounting,Controlling,RiskManagement,Audit,M&A)

Strategy

Digitalisation/IT(e.g.software,processes,dataprotection)

Transformation(e.g.product,workingmodels)

HR(e.g.personnelmanagement,employeematters,workingenvironment)

Sustainability/ESG*

Industry(e.g.production,procurement)

Innovation,Research&Development,Technology

Sales/Brand

CapitalMarket

90%100%60%100%100%100%40%100%60%80%

**Tenure:notpartofthequalificationprofilefortheSupervisoryBoard

***Internationality:Inadditiontonationality,theinternationalexperienceisafurthercriteria

GovernancePresentationAGM2023

*Especially:Environment:GreenProduction&Logistics,Climate&DecarbonisationStrategy;Social:

PeoplePlan,SustainableSupplyChains;Governance:SustainableCorporateGovernance,

23

SustainableFinance

ShareholderRepresentatives

2021

2008

2014

2021

2021

Termlimitnotbreached

Diversity

Gender

Male

Female

Male

Male

Female

Yearofbirth19481955195819611964

Nationality

Dutch

Finnish

US-American

German

German

Internationalexperience

Educational/professionalbackground

Chemistry/MBA

SoftwareEngineering

MechanicalEngineering

ChemicalEngineering

BusinessAdministration

Chemistry

FormalSuitability

Independence*

Agelimitnotbreached

*WithinthemeaningoftheDCGK(GermanCorporate

GovernanceCode)

DrBerndPischetsriederSariBaldaufBenvanBeurdenDrMartinBrudermüllerLizCentoni

Chairman

Joinedboardin

Qualification&diversityoverview(beforeAGM2023)

Tenure

GovernancePresentationAGM202324

ShareholderRepresentatives

Qualification&diversityoverview(beforeAGM2023)

Competencies/Experience

DrBerndPischetsriederSariBaldaufBenvanBeurdenDrMartinBrudermüllerLizCentoni

Chairman

Finance(e.g.Accounting,Controlling,

RiskManagement,Audit,M&A)

Strategy

Digitalisation/IT(e.g.software,processes,

dataprotection)

Transformation(e.g.product

workingmodels),

HR(e.g.personnelmanagement,

employeematters,workingenvironment)

Sustainability/ESG*

Industry(e.g.production,procurement)

Innovation,

Research&Development,Technology

Sales/Brand

CapitalMarket

*Especially:Environment:GreenProduction&Logistics,Climate&DecarbonisationStrategy;Social:PeoplePlan,SustainableSupplyChains;Governance:

SustainableCorporateGovernance,SustainableFinanceGovernancePresentationAGM202325

ShareholderRepresentatives

ProfessorDrHeleneSvahn

OlafKoch

TimotheusH?ttges

MarcoGobbetti

2022

2022

2021

2021

2020

Termlimitnotbreached

Diversity

Gender

Female

Male

Male

Male

Female

Yearofbirth19521958196219701974

Nationality

British/SouthAfrican

Italian

Swedish

German

German

Internationalexperience

Educational/professionalbackground

History/

Marketing/Sustainability

Biotechnology/ElectricalEngineering

BusinessAdministration/MBABusinessAdministration

International

Management/Sales

FormalSuitability

Independence*

Agelimitnotbreached

*WithinthemeaningoftheDCGK(GermanCorporate

GovernanceCode)

Joinedboardin

DameVeronicaAnne(“Polly”)Courtice

Qualification&diversityoverview(beforeAGM2023)

Tenure

GovernancePresentationAGM202326

ShareholderRepresentatives

ProfessorDrHeleneSvahn

DameVeronicaAnne(“Polly”)Courtice

OlafKoch

TimotheusH?ttges

MarcoGobbetti

Competencies/Experience

Finance(e.g.Accounting,Controlling,

RiskManagement,Audit,M&A)

**

**

Strategy

Digitalisation/IT(e.g.software,processes,

dataprotection)

Transformation(e.g.product

workingmodels),

HR(e.g.personnelmanagement,

employeematters,workingenvironment)

Sustainability/ESG*

Industry(e.g.production,procurement)

Innovation,

Research&Development,Technology

Sales/Brand

CapitalMarket

Qualification&diversityoverview(beforeAGM2023)

*Especially:Environment:GreenProduction&Logistics,Climate&DecarbonisationStrategy;Social:PeoplePlan,SustainableSupplyChains;Governance:Sustainable

CorporateGovernance,SustainableFinance**FinancialexpertaccordingtoSection100(5)AktienG(GermanStockCorporateAct);recommendationSectionD.3DCGKGovernancePresentationAGM202327

SupervisoryBoardcommittees

AuditCommittee

LegalAffairsCommittee

NominationCommittee

MediationCommittee

?decidestheservicecontracts

andothercontractualmattersinrelationtotheBoardof

Managementandthe

SupervisoryBoard

?advisesanddecidesonissuesrelatingtocorporate

governanceandissues

recommendationsonsuch

issuestotheextentSupervisoryBoardapprovalisrequired

?assistsandcounselsthe

ChairmanandViceChairmanoftheSupervisoryBoard

?coordinatestheexerciseoftherightsanddutiesofthe

SupervisoryBoardwithregardtotheemissions-andantitrust-relatedproceedings

?preparesresolutionsofthe

SupervisoryBoardinthis

contextandmakesappropriaterecommendationsfor

resolutions

?proposescandidates

representingtheshareholdersforelectiontotheSupervisoryBoard

?composedexclusivelyof

SupervisoryBoardmembersrepresentingtheshareholders

?establishedbytheSupervisoryBoardpursuanttoitsobligationsunder§31(3)Co-DeterminationAct

SupportingtheworkoftheSupervisoryBoard(beforeAGM2023)

CommitteesoftheSupervisoryBoardandtheirshareholderrepresentativemembers

PresidentialCommittee

DrBernd

Pischetsrieder

Chairman

DrBernd

Pischetsrieder

Chairman

DrBernd

OlafKoch

Chairman

OlafKoch*

Chairman

Pischetsrieder

Chairman

BenvanBeurden

BenvanBeurden

PollyCourtice

BenvanBeurden

TimotheusH?ttges*

SariBaldauf

LizCentoni

*FinancialexpertaccordingtoSection100

(5)AktienG(GermanStockCorporateAct);

recommendationSectionD.3DCGK

?responsibleforexaminingtheinterimaccountsandpre-

examiningtheannualfinancialreportstheannualfinancial

statementsandthe

consolidatedfinancialstatements

?authorizedtoinstructthe

independentauditorandtodeterminetheauditemphasis

?givesrecommendationstotheSupervisoryBoardonthe

appropriationofnetincome,financialmeasuresandthelike

GovernancePresentationAGM202328

AGENDA

Review2022&strategy

AnnualGeneralMeeting2023

ESGGovernance

SupervisoryBoard

Remunerationsystem

RemunerationSystem

UpdatefortheBoardofManagement

EnhancetheremunerationsystemfortheBoardofManagementinordertoreducecomplexity,increasetransparencyforshareholdersandto

increasetheanchorageofESGaspartofthestrategygoals

STI:Increasedweightingtocustomertargetsinthenon-financial

performancecriteriainordertofurtherreinforceacustomer-centricmindsetaspartofgoalsetting

STI:StreamlinedtransformationtargetsinordertoreducecomplexityandhaveafocusonthemainESGareas;introductionofapenalty

of-25%

LTI:IntroductionofESGtargets(e.g.incl.xEVshare)aspartofLTIbasedontheirlong-termfocus

StockOwnershipGuidelines:Additionofatwoyearsholdingperiodinordertoincreasemanagement’sfocusonthelong-termcompanygoals

GovernancePresentationAGM202330

~30%

Fixedremuneration

StockOwnershipGuidelines

Thenumberofsharesto

beheldissetbetween

20,000and75,000

Upto25%ofthegross

remunerationfromthe

PerformancePhantom

SharePlanstobeused

toacquireordinary

shares

Malus/clawback

+

~30%

~40%

Partialreductionorcompleteelimination/reclamationofvariableremunerationpossible

+

Basesalary

Short-andmedium-termincentive(STI)

Long-termincentive

(LTI)

Fringebenefits

Annualbonus

Performance

PhantomSharePlan

Retirementpensioncommitment

BoardofManagementremuneration

Alignedwiththebusinessstrategy,sustainableandlong-termgrowth

Componentswithchangesfor2023onwards(proposal)

ComponentsoftheRemunerationSystem

TargetRemuneration

~70%

VariableRemuneration

GovernancePresentationAGM202331

BoardofManagementremunerationChangesinSTIinordertoreducecomplexityandfocusonESGmainareas

VariableRemuneration

Short-andmedium-termincentive(STI)

AnnualbonusFY2022

AnnualbonusFY2023*

Target/capPerformancecriteriaTarget/cap

Financial

targets

target/actualcomparison:

EBIT(50%)

FCFoftheindustrialbusiness(50%)

Employee;CustomerMiS,CustomerNPS;Integrity

Environment,Social,Governance

50%paidoutafteroneyear

50%deferralcoupledwithshareprice

performancecomparedtocompetitors

target/actualcomparison:

50%EBIT

50%FCFoftheindustrialbusiness

Environment;Social;

Governance;Digitisation

Employee;Diversity;Customer;Integrity

100%paidoutafteroneyear

max.200%

(cap)

max.200%

(cap)

-10%-10%

-10%-10%

-25%-25%

0%-200%

0%-200%

0%-25%

+

Non-financialtargets

+

Transformation

targets

=

Payout

Changes

-

ShiftdiversitytoLTISplitofcustomertargets

(MIS,NPS)**

OneKPIeachforE,S,G;Introductionofmalus-25%

Deferralomittedduetolimitedimpact

Performancecriteria

*AmendmenttobesubmittedtoAGMforapproval**MIS=MonthsinService,NPS=NetPromoterScoreGovernancePresentationAGM202332

BoardofManagementremuneration

ChangesinLTItoreflectlong-termfocusofESGcriteria

VariableRemuneration

Long-termincentive(LTI)

PPSP2022

PPSP2023*

Performancecriteria

Target/cap

Target/cap

Weighting80%

(previously100%)

AdditionofthreeESGKPIsfor;weighting20%

nochangeoncap

RoShurdlerateomitted(complianceclawbackremains)

Financial

targets

+

ESG

=

Payout

HurdlerateforRoS

-

StockOwnership

50%ReturnonSales

50%relativeshareperformance

Environment,Social,

Governance

Afterthethree-yearperformance

periodandanobligatoryone-year

retentionperiod

Afterthethree-yearperformance

periodandanobligatoryone-year

retentionperiod

50%ReturnonSales

50%relativeshareperformance

max.250%(cap)

max.250%

(cap)

0%–200%

0%-200%

0%-200%

-

-

-aiAddedholdingperiod

PerformancecriteriaChanges

Malus/clawback

GovernancePrese