Remuneration of Group Management (Extended Management Team)

The Nomination and Compensation Committee reviews and issues guidelines for the Company’s remuneration schemes. In addition, the Nomination and Compensation Committee confirms remuneration packages for Group Executive Board members who report directly to the President and CEO. Remuneration packages for other Extended Management Team members are confirmed by the President and CEO. Compensation packages normally include basic salary, fringe benefits (typically use of a company car and mobile phone), contribution-based pension schemes, and performance-related bonus schemes. Bonus schemes are always based on written contracts. Bonus criteria vary, but are usually based on the Group’s five Key Performance Areas: Safety, Customer, People, Growth, and Profitability. Bonuses are related to an individual’s performance and that of the unit that he/she belongs to. Numerical performance criteria are used rather than personal assessments, whenever possible. The maximum bonus percentage is based on the individual’s responsibilities and in 2011 varied between 30 and 50 percent of individual’s annual base salary.

The Finnish members of the Extended Management Team participate in a contribution-based group pension insurance scheme, which can be withdrawn from the age of 60. However, the retirement age of the members of the EMT is according to the Employees Pensions Act (TyEL).

Konecranes Group executives established a company named KCR Management Oy in May 2009. KCR Management Oy acquired 517,696 Konecranes Plc shares from the market. The acquisition was financed by capital investments by the executives totaling approximately EUR 1.3 million, as well as a loan in the approximate amount of EUR 7.1 million provided by Konecranes Plc. KCR Management Oy was owned by the executives who belonged to the Group Extended Management Team upon the establishment of KCR Management Oy.

KCR Management Oy had an obligation to repay the loan granted by Konecranes Plc prematurely in the event that the share price of Konecranes Plc exceeded a certain level determined in the agreements other than temporarily. This condition was met in December 2010. The Board of Directors of Konecranes Plc decided that the loan should be repaid through a Share Swap whereby Konecranes Plc acquired all the shares in KCR Management Oy. To implement the Share Swap, the Board of Directors of Konecranes Plc decided on a directed share issue in which the Company offered, in derogation from the shareholders’ pre-emptive subscription rights, a total of 281,007 new Konecranes shares to the shareholders of KCR Management Oy against share consideration (Share Swap). As part of the Share Swap, the shareholders of KCR Management Oy conveyed the KCR Management Oy shares they held and received new Konecranes Plc shares in return. The new shares are subject to the transfer restriction determined by the Board of Directors in May 2009 and expiring on November 1, 2012. KCR Management Oy was merged into Konecranes Plc effective on December 31, 2011.

The new shares were registered in the subscriber’s book-entry accounts and entered into the Trade Register on January 13, 2011 and were subject to public trading on NASDAQ OMX Helsinki from January 14, 2011.

There were no loans issued by the Company to the Extended Management Team (excluding the President and CEO) at the end of 2010 or 2011.