The Board of Directors of Oriola-KD Corporation has resolved on a new executives incentive plan and is planning to launch a key personnel share savings plan

19 december 2012 Oriola-KD Corporation Stock Exchange Release 19 December 2012 at 16.00 pm Executives Incentive Plan The Board of Directors of Oriola-KD Corporation has approved a new share-based incentive plan for the Group executives (the Plan). The aim of the Plan is to combine the objectives of the shareholders and the executives in order to increase the value of the Company, to commit the executives to the Company, and to offer them a competitive reward plan based on holding the Company shares.  The Plan constitutes a crucial part of the Group executives' total compensation. The Plan includes three performance periods, calendar years 2013, 2014 and 2015. The Board of Directors of the Company will decide on the performance criteria and on targets to be established for them at the beginning of each performance period. The potential reward from the Plan for the performance period 2013 will be based on the Oriola-KD Group's Earnings per Share (EPS) and Return on Capital Employed (ROCE), per cent. The Board of Directors will have the possibility to adjust the performance criteria for the following performance periods. The potential reward from the performance period 2013 will be paid partly in the Company's series B shares and partly in cash in 2016. The Company will cover taxes and tax-related costs arising from the reward to the executives with the proportion to be paid in cash. No reward will mainly be paid if an executive's employment or service in a Group company ends before the reward payment. If an executive's total earnings are more than his or her total salary of the calendar year preceding the reward payment multiplied by 3.5, the reward to be paid on the basis of the performance period will be reduced for such exceeding part. Total earnings mean total salary together with annual bonus and long-term incentive plan, and total salary means fixed base salary together with fringe benefits. The target group of the new Plan consists of approximately 10 executives, as of today 7 participants, during the performance period 2013. The rewards to be paid on the basis of the performance period 2013 will correspond to the value of a maximum total of 1,010,000 Oriola-KD Corporation series B shares (including also the proportion to be paid in cash) of which 720,000 Oriola-KD Corporation series B shares (including also the proportion to be paid in cash) have been allocated to the current 7 participants. Oriola-KD Corporation has a total of 151,257,828 shares, of which the number of series A shares is 47,148,710 and the number of series B shares is 104,109,118 shares on 19 December 2012. Key Personnel Share Savings Plan The Board of Directors is designing the launch of Share Savings Plan (the SSP) to be offered to 70 Group key personnel, including the members of the Extended Management Team. The objective of the SSP is to strengthen the tie between the Oriola-KD shareholders and key personnel by encouraging the key personnel to acquire and own shares in the Company. The aim is to increase and encourage long-term key personnel interest and involvement in Oriola-KD business and development. Participation in the SSP will be strictly voluntary and will provide that a key employee invests in Oriola-KD shares. Key employees will be offered an opportunity to save a proportion of their salaries. The accumulated savings are used for share purchases in the Company. After approximately 3 years, each participant is awarded 2 free matching shares (including taxes and tax-related costs) for each 3 purchased shares, provided that the initially purchased shares are retained and the participant's employment or service continues. The intention of the Board of Directors is to finally decide on the launch of the SSP in spring 2013, with savings estimated to begin in July 2013. Oriola-KD Corporation Eero Hautaniemi President and CEO Petter Sandström General Counsel Further information: Eero Hautaniemi President and CEO tel. +358 (0)10 429 2109 e-mail: eero.hautaniemi@oriola-kd.com Distribution NASDAQ OMX Helsinki Ltd. Key media Released by: Oriola-KD Corporation Corporate Communications Orionintie 5 FI-02200 Espoo, Finland www.oriola-kd.com This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Oriola-KD Oyj via Thomson Reuters ONE [HUG#1666317]