Second plan for Raute’s top management remuneration system, LTI 2018–2020, takes off

RAUTE CORPORATION STOCK EXCHANGE RELEASE 22 MARCH 2018 at 3:00 p.m.


SECOND PLAN FOR RAUTE’S TOP MANAGEMENT REMUNERATION SYSTEM, LTI 2018–2020, TAKES OFF 

The company’s Board of Directors has decided on the starting up of the second individual plan (LTI 2018–2020) for the performance and share value based long-term incentive program for the top management, decided on February 15, 2017.

The LTI 2018–2020 plan consists of two parts. The first part consists of a three-year earnings period. Its weight is 80 per cent of the whole plan and the performance target is the Total Shareholder Return (TSR) proportioned to the peer group. The second part consists of a one-year earnings period and the subsequent two-year vesting period. Its weight is 20 per cent of the whole plan and the performance target is Earnings Per Share (EPS). Any rewards based on both parts will be paid in the spring of 2021 if the performance targets set by the Board of Directors are achieved. Eleven persons belonging to Raute Group’s top management, including the members of the Executive Board, are entitled to participate in the LTI 2018–2020 system.

If the performance targets set for the plan beginning at the start of 2018 are fully achieved, the aggregate amount of rewards paid based on the plan is around EUR 0.5 million, estimated based on the average share price on the trading day preceding this release. The total amount of rewards means their gross amount before the withholding of the applicable payroll tax.

Raute’s overall long-term remuneration system is made up of three-year plans that begin every year. The purpose of the plan is to align the objectives of the owners and management in order to develop the company’s value, and to commit management to achieving the company’s strategic goals by offering a competitive long-term incentive plan. Information was released on the overall long-term remuneration system on February 15, 2017 and more up-to-date information was provided in the Remuneration Statement on February 15, 2018.

RAUTE CORPORATION
Tapani Kiiski
President and CEO


FURTHER INFORMATION:
Mr. Erkki Pehu-Lehtonen, Chairman of the Board of Directors, mobile +358 400 468 084

DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and lumber. The technology offering covers the entire production process of veneer, plywood and LVL and special measurement equipment for lumber. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. Its other production plants are in Kajaani, Finland, the Vancouver area of Canada, in the Shanghai area of China and in Pullman, WA, USA. Raute’s net sales in 2017 were EUR 148.6 million. The Group’s headcount at the end of 2017 was 704. More information on the company can be found at www.raute.com.