Dear Shareholders

On behalf of the Board of Directors and the Remuneration Committee, I am pleased to share our Remuneration Report for fiscal year 2025.

Avolta’s compensation system is performance-oriented and links strategic and financial success with sustainable growth and long-term value creation for our shareholders.

The Remuneration Report describes this system, offering overviews of our remuneration framework and governance, and how compensation awarded aligns with our core reward principles.

The Remuneration Committee performed its regular activities in 2025, including reviewing the remuneration framework for the Board of Directors and the Global Executive Committee, as well as setting and assessing performance objectives for short- and long-term incentive plans, as well as individual members’ remuneration.

At the end of 2024, the peer group for the compensation of the Board of Directors and the Global Executive Committee was reviewed and adjusted.

This was followed by a benchmarking analysis of both the compensation design and the compensation levels.

Based on the peer group and benchmark results and taking into account feedback received by our shareholders, the following changes were made for fiscal year 2025:

• The performance objectives for the annual short-term incentive (STI) plan have been expanded with a new KPI of CORE EPS at a 35% weight, further aligning the incentive framework with shareholder value creation.
• For the long-term incentive (LTI) plan, the targets are CORE EPS 30% and Sustainability 20% while the KPI Relative TSR has been increased to 50% (25% in 2024), reinforcing our efforts to align with shareholders’ interests. The sustainability KPI has been further refined, focusing on Science Based Target Initiative (SBTi) as well as on food waste.
• The CEO received a base salary increase as contractually agreed at the outset of his appointment. Three members of the Global Executive Committee received a higher long-term incentive grant in order to align total target compensation with benchmark.

The Board of Directors and the Remuneration Committee conclude that the compensation system is well balanced.

We are also confident that our compensation framework supports our long-term commitment to financial and non-financial values and that it is well aligned with our Destination 2027 strategy and shareholders’ interests.

We will continue to assess and review our compensation programs to ensure that they fulfil their purpose in the evolving context in which Avolta operates. We will also continue to pursue an open and active dialogue with our shareholders.

On behalf of the Board of Directors and the Remuneration Committee, I would like to thank you for your continued engagement and your confidence in Avolta. We trust that you will find this report informative.

Yours sincerely,