Loihde Plc launches a new Employee Share Savings Plan (ESSP)

Loihde Plc Company announcement 25 May 2023 at 8:25 p.m. EEST

The Board of Directors of Loihde Plc has decided to establish an Employee Share Savings Plan (ESSP) for the employees of Loihde Plc and its subsidiaries. The aim of the ESSP is to encourage employees to acquire and own Loihde shares, and it is intended to align the interests of the shareholders and the employees as well as to increase employees’ motivation and long-term commitment to the company.

The ESSP consists of annually commencing plan periods, each one comprising of an approximately one-year savings period and a holding period following the savings period. The ESSP is offered to all Loihde employees. The employees will have an opportunity to save a portion of their salaries and invest those savings in Loihde’s shares. The savings will be used for acquiring Loihde’s shares quarterly. The Board decides if the savings shares are purchased from the market or if the savings shares are delivered to the participants by a directed share issue decided separately by the Board.

As a reward for the commitment, Loihde grants the participating employees a gross award of one (1) matching share for every two (2) savings shares acquired with their savings. Additionally, the participants have the opportunity to earn half (0.5) or one (1) performance-based matching share (gross) for every two (2) savings shares acquired with their savings based on the achievement of the performance criterion. The performance criterion is the group’s EBITDA margin for the financial year 2025. Continuity of employment and holding of acquired savings shares for the duration of the holding period are the prerequisites for receiving the award.

The potential award will be settled in shares, or partly in shares and partly in cash, after the end of the holding period. The cash portion is intended to cover taxes and tax-related costs. Matching shares will be freely transferable after their registration on the participant’s book-entry account.

Participation in the ESSP is voluntary and the employees will be invited to participate in one plan period at a time. The first savings period will commence on 1 July 2023 and end on 31 May 2024. The holding period of the first plan period begins at the first acquisition of savings shares and ends on 31 May 2026. The maximum number of matching shares (gross number before taxes) for the first plan period is approximately 62,500, calculated at the current share price. The final number of matching shares depends on the employees’ participation and savings rate in the plan, the fulfilment of the prerequisites for receiving matching shares and the achievement of the performance criterion.

“Loihde has offered its employees share-based incentive schemes for five years now. They have been immensely popular and more than half of our employees have become owners of Loihde through them”, says Loihde’s CEO Samu Konttinen.

Further information

CEO Samu Konttinen, media contact: Director of Communications Tiina Nieminen, tel. +358 44 411 3480, tiina.nieminen@loihde.com

Certified Adviser Aktia Alexander Corporate Finance Oy, tel. +358 50 520 4098

Loihde enables business continuity. We help our customers to create growth and competitiveness through digitalisation and to protect themselves from physical and cyber threats. Loihde consists of two business areas: security solutions with the brand Loihde Trust and digital development with the brands Loihde Advance, Loihde Factor and Loihde Cloudon. The Group has approximately 900 employees and its revenue in 2022 amounted to EUR 123 million.