Investor Presentaiton
ESG update: focus on the Social) and the Governance) -
Alignment of employee with shareholder interests
⚫ Erste Group plans to launch employee share programme (ESP)
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Key goals of employee share programme
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Turn employees of the bank in CEE and Austria into shareholders of Erste Group
Foster long-term share ownership culture and financial knowledge among employee base
Further improve employee retention and employer attractiveness
Allow employees to take advantage of tax benefits for share ownership, if applicable
Over time establish employee foundation as a significant “shareholder" by transfer of voting rights from employees to
employee foundation
Planned structure of employee share programme
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2-pronged programme structure
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Profit participation of EUR 350 pa for each employee subject to (1) parent company paying dividends and (2) parent
company and subsidiaries satisfying regulatory capital and liquidity requirements
Company subsidised investment opportunity for employees: each employee who purchases additional Erste Group
shares up to a certain limit (tbd) is entitled to a sliding scale subsidy of investment volume by company
Long-term retention periods, thereafter tax-free disposal possibility, if applicable
Shares will be bought by Erste Group on the market - utilising existing buyback authorisation, subject to ECB
approval
Key numbers of the employee share programme
Estimated annual cost of sliding scale subsidy approx EUR 13m
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Annual cost of profit participation shares approx EUR 20m
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Total estimated annual cost of programme approx 0.75% of total expenses
ERSTEŚ
Group
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