Bid Corporation (BID) Status Update summary

Remuneration policy updates and shareholder engagement

• Minimum shareholding policy for executives formalized in response to shareholder input.

• Adjusted weighting between HEPS and return on capital metrics as requested by shareholders.

• Enhanced disclosure granularity, balancing transparency with strategic confidentiality.

• Ongoing engagement with shareholders to refine remuneration practices.

Capital efficiency metrics and performance measurement

• ROFE (Return on Funds Employed) remains the core performance metric, deeply embedded at all organizational levels.

• ROFE is audited by external auditors and calculated using annual averages, agnostic to capital structure and tax rates.

• ROFE enables benchmarking across 1,700 warehouses, regions, and countries.

• Consideration to include ROIC in future discussions, with potential adjustments to metric weightings for senior executives.

Investment strategy and ESG integration

• Continuous reinvestment in facilities supports both ESG goals and long-term competitiveness.

• CapEx investments initially increase costs but yield long-term benefits and market share gains.

• ESG targets include a 25% reduction in Scope 1 and 2 emissions by 2025, already surpassed with a 33% reduction by 2024.

• 10% of variable pay is linked to ESG, with a focus on emissions, recycling, and water use.