REPORT ON THE REMUNERATION POLICY

The Report on the Remuneration Policy and Compensation Paid is approved annually by the Board of Directors, upon proposal of the Remuneration Committee.

The Report on the Policy and Compensation Paid is divided into two sections:

• the first section illustrates the Company’s policy on the remuneration of the members of the Board of Directors, the General Manager and other Executives with Primary Responsibilities, including Executives with Strategic Responsibilities of the Company and, without prejudice to the provisions of Article 2402 of the Civil Code, the Statutory Auditors, as well as the procedures used for the adoption and implementation of such policy;
• the second section, by name with reference to the members of the Board of Directors, the Statutory Auditors and the General Manager and in aggregate form with reference to other Executives with Primary Responsibilities, including Executives with Strategic Responsibilities of the Company, provides an adequate representation of the individual items that make up the remuneration of the aforementioned subjects, highlighting their consistency with the Company’s remuneration policy, and also illustrates the compensation paid to such subjects in the previous year, for any reason and in any form, by the Company and its subsidiaries, as well as by associated companies.

Pursuant to Article 123-ter, paragraphs 3-ter and 6 of the Consolidated Law on Finance, the first section of the Report on the Remuneration Policy and Compensation Paid is subject to binding vote and the second section to non-binding vote by the Ordinary Shareholders’ Meeting convened pursuant to Article 2364, second paragraph, of the Civil Code.