Compensation
policy

There is an Annual Bonus System, associated with the working performance of each person and the achievement of certain objectives.

Alestis' Compensation Policy is based on the job evaluation system, by factors. Essentially, the evaluation measures the job's relative contribution to the organisation. Thus, each job is assigned a rating according to its importance. This ensures that the remuneration of each individual is always based on objective criteria.

Each level has a point range, so that jobs at the same level can have different compensation, depending on how each is rated. Similar jobs are grouped together to form role families. These families fall within certain pay levels, which are used to define salaries. And each person can be paid within the band corresponding to his or her job, depending on his or her personal characteristics. These will place him or her in one point or another within his or her band.

This system ensures that remuneration at Alestis is fair internally and competitive externally.

Variable

Compensation System

There is also an annual Variable Compensation System, associated with the working performance of each person and the achievement of certain objectives, reviewed annually, according to the results-based management procedure. Depending on the range in which the person's role falls, he/she will have a maximum percentage of variable remuneration, with the percentage of variable bonus ranging between 10% and 30%, depending on the remuneration range and the person. The implementation of variable remuneration is being gradually phased in. The maximum percentages established are as follows:

range% Var Max

Senior management above policy

E

30%

Senior management above policy

D

20%

Policy staff

M

20%

Policy staff

P

15%

Policy staff

C

10%

policy staff

T

No variable

Policy staff

no policy

No variable

collective agreement

No variable

This compensation is currently available for people in groups E to P and a high percentage of the C group.

Types of Goal

Company goalsIndividual goals

These are established by Alestis management. They are common to all persons included in the Objectives System.

A maximum of 5 Company objectives will be established.

They are directly linked to the work of each professional and help to meet the company's objectives. They can be individual or team-based (shared with other people in the organization).

ECONOMIC OBJECTIVES: Related to EBITDA and Free Cash Flow.

__________________________________________

COLLECTIVE OBJECTIVES: Related to customers, commercial, quality and/or people..

The number of individual goals is established between 2 and a maximum of 4. They must be mutually agreed between the person in charge and the collaborator during the previously established goals meeting.

The Compensation Committee meets annually to analyze the performance of the employees in their salary range. The criteria used for this are their performance evaluation, their suitability to Alestis' key behaviours, their position in the range and their expertise, together with market analysis and the potential of each individual.

On the other hand, the staff can enjoy a series of additional benefits, as part of the Flexible Compensation Plan, such as transport ticket, childcare vouchers, medical insurance and training actions.

Alestis do Brasil also has a salary band structure for the fixed salary. People move within the ranges and groups according to criteria such as individual performance, position within the range/group, expertise, hierarchical superior's appraisal and seniority.

Variable remuneration for members of the Management Committee is linked to the achievement of overall objectives which are reviewed annually.

Support personnel and direct labour personnel are governed by collective bargaining agreements in all cases (Spain and Brazil).

Alestis performed a compensation record (with 2021 data), in accordance with Spanish Royal Order 902/2022, and the results analysis confirms there is no pay gap between men and women at a global level. However, it is an objective reality that Alestis is a male-dominated company (according to the diagnosis) in certain areas and positions the number of women is reduced.

The average remuneration of the Board of Directors is regulated by Alestis' Articles of Association: it will be a fixed annual allowance, appropriate to their services and responsibilities. In 2022 this remuneration was €45,000 a year per member.

Staff can enjoy a series of additional benefits as part of the Flexible Remuneration Plan, such as transport tickets, childcare vouchers, medical insurance and training activities.

No payments in kind were made during the year. Neither have any contributions been made to pension funds or plans for the benefit of the Board of Directors or management team of Alestis, nor have any obligations been entered into in this connection. The Board members have not received any remuneration in the form of profit-sharing, life insurance premiums or payments to long-term savings schemes. Neither have they received any shares or stock options during the year, nor have they exercised any options, nor have they exercised any outstanding options or granted any advances or loans. No indemnity payments have been made.

Average annual compensational

by gender
menwomen

Spain (€)

33,428
31,220

Brazil (R$)

3,659
4,206

Average annual compensational by gender and professional category

Spain (€)
menwomen

Managerial roles

102,119
114,850

Middle management and skilled technicians

54,235
48,288

Technicians

36,084
31,521

Functional support (out of agreement)

26,676
21,819

OPERATORS & FUNCTIONAL SUPPORT under COLLECTIVE AGREEMENT

28,659
25,659
Brazil (R$)
MenWomen

Managerial roles 64

15,756

--

Middle management and skilled technicians

8,904
10,345

Technicians

3,123
3,261

Functional support

3,926
3,688

OPERATORS & FUNCTIONAL SUPPORT under COLLECTIVE AGREEMENT

2,481
2,485

64. Minimum amount according to Brazilian regulations. The rest of the remuneration of the Alestis do Brasil manager is made from Spain (and has been accounted for as such in the top row).

The difference in average annual compensation in economic terms is not due to wage discrimination between genders, but rather to the fact that the presence of women at global staff levels continues to be a minority, and although progress is being made in the incorporation of female profiles, the conditions of seniority and wage progression in the established salary bands may affect these data. In fact, a salary audit was completed in 2022, in accordance with Spanish Royal Order 902/2020, confirming the non-existence of salary discrimination on the grounds of gender.

Average annual compensational

by age
Up to 3030-5050+

Spain (€)

28,996
33,350
32,663

Brazil (R$)

2,664
3,970
6,832

Average annual compensational

by professional category 65
Managerial rolesMiddle management and skilled techniciansTechniciansFunctional supportOperators

Spain (€)

103,534
52,509
34,650
24,363
28,273

Brazil (R$)

15,756
9,359
3,160
3,827
2,482

65. The following are considered: management, as managerial personnel; middle management and technical experts, as managers of functional and/or technical areas; technicians, qualified personnel with technical functions in different areas; support functions, personnel who perform support functions for the rest of the organization; operators, specialist workshop staff, who perform manufacturing and/or assembly functions.