Report by the Board of Directors

Variable pay system

Variable pay will be paid based on the achieved targets. A limited amount of EBs employees are participating into Variable Pay (VP) program. The criteria for the short-term merit pay are the financial strategic targets of the Company. In addition, part of the targets may be other objectives of the Company or Business Segment or personal targets. Personal targets vary between duties.

In 2013 the earning period for the Variable Pay was the calendar year. The targets are determined separately for each earnings period. The setting of targets and the review of their achievement is decided on one-over-one basis.