Giglio S p A : 2021 ANNUAL REPORT ON THE REMUNERATION POLICY AND ON THE REMUNERATIONS PAID

GIGLIO GROUP S.p.A.

2021 ANNUAL REPORT ON THE REMUNERATION POLICY AND ON THE REMUNERATIONS PAID

pursuant to Art. 123-ter of the Consolidated Financial Act and 84-quater of the Issuers'

Regulation

Issuer: Giglio Group S.p.A. Website:https://www.giglio.org Date of approval of the Report: 9 April 2022

INDEX

GLOSSARY.................................................................................................................................. 4

INTRODUCTION ......................................................................................................................... 6

SECTION I ................................................................................................................................... 8

• 1. BODIES INVOLVED IN THE PREPARATION, APPROVAL, EXECUTION AND EVENTUAL

  REVISION OF THE REMUNERATION POLICY ...................................................................... 8

• 2. APPOINTMENTS AND REMUNERATION COMMITTEE ..................................................... 10

  • 2.1 Composition and Operating Procedures of the Appointments and Remuneration Committee (pursuant to Art. 123-bis, paragraph 2, letter d)

    of the Consolidated Act) .................................................................................... 10

  • 2.2 Competence of the Appointments and Remuneration Committee ................. 11

• 3. THE REMUNERATION POLICY .......................................................................................... 12

  3.1 Policies and Objectives ........................................................................................ 12

  Policies Relating to the Remuneration's Fixed and Variable Components .................. 13

  A.	Remuneration for the Office of Director ........................................................... 14
  B.	Remuneration Policy for Non-Executive Directors ............................................ 14
  C.	Remuneration Policy for Executive Directors .................................................... 14
  D.	Remuneration Policy for Senior Executives ....................................................... 15
  E.	Short- and Medium/Long-term Variable Component Remuneration Policy for
  Executive Directors and Senior Executives. ....................................................... 16
  3.2	Executive Directors and Senior Executives' Remuneration Plans Based on
  Financial Instruments ....................................................................................... 17
  3.3	Non-Monetary Benefits ...................................................................................... 21
  3.4	Clauses for Holding Financial Instruments in the Portfolio .............................. 21
  3.5	Applicable Treatments in the Event of Termination of Office or of
  Employment Relationship .................................................................................. 21
  3.6	Social Security or Pension Coverage .................................................................. 22
  3.7	Policy Regarding Independent Directors, the Participation to Committees and
  the Undertaking of Specific Responsibilities ..................................................... 22

  3.8 Benchmarks Used for the Definition of the Remuneration Policy ................ 22

  3.9 Board of Statutory Auditors' Remuneration ..................................................... 23

  3.10 Exceptional Circumstances ................................................................................. 23

SECTION II ................................................................................................................................ 24

FIRST PART ............................................................................................................................... 24

1. BOARD OF DIRECTORS' REMUNERATION ....................................................................... 24

2. SENIOR EXECUTIVES' REMUNERATION ........................................................................... 27

3. BOARD OF STATUTORY AUDITORS' REMUNERATION ..................................................... 27

4. SENIOR EXECUTIVES' REMUNERATION ........................................................................... 28

SECTION II ................................................................................................................................ 29

SECOND PART .......................................................................................................................... 29

TABLE 1 (model 7-bis): Remuneration Awarded to the Senior Executives, the Board of

Statutory Auditors, to the General Manager and to Other Managers with Strategic Responsibilities ............................................................................................................... 31

TABLE 3B (schedule 7-bis): Incentive Plans for Members of the Board of Directors, the

Board of Statutory Auditors, for the General Manager and for Other Senior Executives ....................................................................................................................... 36

TABLE 1 (schedule 7-ter): Investments in associates of Members of the Board of

Directors, the Board of Statutory Auditors, of the General Manager in the Company and in its Subsidiaries ..................................................................................................... 37

TABLE 2 (schedule 7-ter): Investments in associates of Other Senior Executives in the

Company and its Subsidiaries ........................................................................................ 38

GLOSSARY

Shareholders' Meeting: The Shareholders' Meeting of the Issuer

Shares: The Company's ordinary shares, listed on the MTA-STAR segment. Borsa Italiana: Borsa Italiana S.p.A.

Corporate Governance Code: the self-regulatory code for listed companies approved on January 2020 by the Corporate Governance Committee and promoted by Borsa Italiana, Abi, Ania, Assogestioni, Assonime and Confindustria, available to the public on the Website of the Corporate Governance Committee athttp://www.borsaitaliana.it/comitato-corporate-governance/codice/codice.htm1.

Italian Civil Code: the Italian Civil Code.

Board of Statutory Auditors: the Issuer's Board of Statutory Auditors.

Appointments and Remuneration Committee or Committee: the committee for remuneration and appointments constituted within the Company's Board of Directors.

Board of Directors: the Issuer's Board of Directors.

Grant Date: 15 May 2021, date in which the Board of Directors identified the beneficiaries of the Stock Option Plan 2021-2028 and determined the number of Options to be granted to each one of them.

EBITDA: the algebraic sum of the following items, for every financial year, on the basis of the results of the Company's annual consolidated financial statement drafter pursuant to IAS/IFRS standards and certified without qualifications:

• 1. (+) Revenues from sales and services;

• 2. (+) Other revenues;

• 3. (+/-) Change in inventories;

• 4. (-) Production costs;

• 5. (+) Amortization, depreciation & write-downs;

• 6. (+) Provisions for liabilities;

• 7. (+) Other provisions;

• 8. (+) Non-recurring costs.

Issuer or Giglio Group or Company: Giglio Group S.p.A.

Fiscal Year 2021: the fiscal year closed at 31 December 2021.

Fiscal Year 2022: the fiscal year closed at 31 December 2022.

Group: the group headed by Giglio Group.

Borsa Instructions: instructions for the regulation of the markets organised and managed by Borsa Italiana S.p.A.

Options: the right granted to beneficiaries of the Stock Option Plan 2021-2028 to subscribe or purchase any Share in accordance with all terms and conditions set forth in the Plan. Any Option gives the right to subscribe or purchase one Share.

Stock Option Plan 2021-2028 or Plan: the compensation plan based on the assignment of Options (stock options) for the subscription or purchase of Shares, aimed at the executive directors and at some of the senior executives of the Group, approved by the Shareholders' Meeting on 29 April 2021, pursuant to Art. 114-bis of the Consolidated Act and Art. 84-bis of the Issuers Regulation. Industrial Plan: the industrial plan approved in 2020 by the Board of Directors and amended in 2021. LTI Plan 2021-2024: the medium/long-term incentive plan aimed at the executive directors and the senior executives for 2021-2024, as adopted by the Board of Directors on 28 May 2021.

MBO Plan: the short-term incentive plan aimed at the executive directors and the senior executives for 2021, as adopted by the Board of Directors on 28 May 2021.

Borsa Regulation: the regulation of the markets organised and managed by Borsa Italiana S.p.A.

Issuers Regulation: the regulation issued by Consob with resolution no. 11971 of 1999 (as amended) regarding the regulation of issuers.

Report: this remuneration report, pursuant to Art. 123-ter of the Consolidated Financial Act and 84-quater of the Issuers' Regulation.

Consolidated Financial Act (CFA): the Legislative Decree no. 58 of 24 February 1998 (Consolidated Financial Act), as amended and integrated.

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