Raute - Other information disclosed according to the rules of the Exchange

Long-term incentive plan established for Raute's senior management and selected key persons

RAUTE CORPORATION, STOCK EXCHANGE RELEASE, 19 FEBRUARY 2025, at 11:40 a.m. EET

Long-term incentive plan established for Raute's senior management and selected
key persons

Raute Corporation's Board of Directors has decided on the commencement of a long
-term incentive plan for the Group's senior management and selected key persons.
The decision includes a Performance Share Plan (“PSP”) as the main structure and
a restricted Share Plan (“RSP”) as a complementary structure.

The purpose of the plan is to align the objectives of the owners and management
in order to develop the company's value for the long term, as well as to commit
the company's management and key persons to the company and to achieving the
company's strategic goals.

Performance Share Plan

PSP 2025-2027 begins at the start of 2025 and covers an earnings period of three
years, with two performance indicators applied. The first performance indicator
is the EBITDA, and its weight is 70 percent. The second performance indicator is
the net sales target, with a weight of 30 percent. Any possible rewards based on
both performance indicators will be paid after the three-year plan ends and the
financial statements have been completed, in spring of 2028, provided that the
performance targets set by the Board of Directors have been achieved. The
potential rewards will be paid in Raute's shares or in cash, or as a combination
thereof. Persons belonging to Raute Group's Executive Board are entitled to
participate in the PSP 2025-2027 plan.

The Board of Directors is entitled to limit the rewards paid under the long-term
incentive plan PSP if the reward would exceed the threshold value of the fixed
annual gross salary of the individual in question. If the participant's service
or employment relationship ends before the payment of the reward, the reward is
generally not paid.

If the performance targets set for the plan beginning at the start of 2025 are
fully achieved, the aggregate maximum amount of rewards to be paid based on the
plan in question will correspond to the value of approximately 90 000 the
company's shares. Aggregate amount of rewards means their gross amount before
the withholding of the applicable payroll tax.

Restricted Share Plan

The Restricted Share Program consists of annually commencing individual share
plans, each comprising a retention period with an overall length of three years.
Each individual plan comprises an overall three-year plan period within which
the company may grant fixed share rewards to individually selected key
employees, including Raute Executive Board, with a retention period of up to
three years. The share reward will be paid after the retention period applied to
the respective individual share grant. The company may choose to pay the granted
share rewards in one or several tranches within the limits of the overall three
-year plan period.

The RSP plan, covering the years 2025-2027, commences as of the beginning of the
year 2025. The aggregate maximum number of shares which may become payable based
on RSP 2025-2027 is 68 000 shares (referring to gross reward from which the
applicable payroll tax is withheld).

The rewards payable based on RSP will at the company' choice either be paid in
shares of Raute or in cash based on the value of the share reward at the time of
payment. The payment of the reward is conditional on the individual's continued
employment or service relationship with Raute.

The maximum value of the reward payable to the participants based on RSP is
limited by a cap which is linked to Raute's share price development with a
multiplier set by the company.

Other terms

In accordance with the ownership recommendation the company abides by, the
members of the company's Executive Board are expected to accrue and, after
attaining, to retain in their ownership an amount of the company's shares that
equals, for the CEO, his/her gross annual fixed salary, and for the other
Executive Board members, their six months' gross fixed salary. The members of
the Executive Board are expected to use 50 per cent of the net bonus he/she
receives from the plan to accrue his/her share ownership until such ownership
meets the level recommended above. Share ownership accrues either by retaining
ownership of bonuses received as shares or by acquiring shares through cash
bonuses received under the plan.

RAUTE CORPORATION

Board of Directors

FURTHER INFORMATION:

Laura Raitio, Chair of the Board of Directors, mobile number +358 50 386 0004

DISTRIBUTION:

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

RAUTE IN BRIEF - Making Wood Matter
Raute is the partner to future-proof the wood industry. Our technologies cover
different production processes with supporting digital and analytics solutions
for engineered wood products. Additionally, we offer a full-scale service
concept ranging from spare parts to regular maintenance and modernizations. Our
innovative hardware and software solutions are designed to support our
customers' efficient consumption of natural resources. In mill-scale projects,
Raute is a global market leader both in the plywood and LVL industries. Raute's
head office and main production plant is located in Lahti, Finland. The
company's other production plants are located in Kajaani, Finland, the Vancouver
area of Canada, Changzhou, China, and in Pullman, WA, USA. Raute's net sales in
2024 were EUR 204.6 million. The Group's headcount at the end of 2024 was 783.
More information about the company can be found at www.raute.com.