As announced on 07 January 2025, as part of Coats Group plc’s leadership succession plan, the Board reached agreement with Jackie Callaway that she would step down from the role of Group Chief Financial Officer and Executive Director at the conclusion of the AGM on 21 May 2025.

The following information is provided in accordance with section 430(2B) of the Companies Act 2006. The arrangements set out below comply with the Company’s Remuneration Policy, which was approved by shareholders at the Annual General Meeting on 17 May 2023.

Salary and benefits

Jackie Callaway will receive her normal remuneration in accordance with her service agreement up to and including 31 May 2025, when she ceases to be employed by the Group.

No further payments relating to salary or benefits will be made in connection with Jackie Callaway’s 12 month contractual notice period.

Annual bonus

As a result of cessation of employment being by way of mutual agreement in connection with the Board’s leadership succession plans, Jackie Callaway remains eligible to participate in the Coats Group Annual Bonus Plan for the financial year ending 31 December 2025. Her entitlement to a bonus will be pro-rated for her service from 1 January 2025 to 31 May 2025 and subject to achievement of performance measures.

Any bonus due, will be paid in cash at the normal payment date and will remain subject to malus and clawback as well as the wider terms of the plan. The bonus earned will be disclosed in the 2025 Directors’ Remuneration Report.

Deferred Annual Bonus Plan Awards

Jackie Callaway’s unvested Deferred Annual Bonus Plan (‘DABP’) awards over 705,558 shares relating to the financial years 2022, 2023 and 2024 will vest in full on the awards normal vesting date, subject to the rules of the DABP. Any dividend equivalents accrued in respect of these awards will be paid in the form of additional shares and capable of exercise thereafter. Any shares acquired in connection with these awards will remain subject to the rules of the DABP, including provisions relating to malus and clawback.

Jackie Callaway’s outstanding vested DABP awards, over 258,709 shares will remain capable of exercise for six months from cessation.

Long Term Incentive Plan Awards

As a result of cessation of employment being by way of mutual agreement in connection with the Board’s leadership succession plans, the Remuneration Committee determined that Jackie Callaway will be treated as a good leaver in respect of her outstanding awards under the Coats Group Plc Long Term Incentive Plan (‘LTIP’). Jackie Callaway’s unvested LTIP awards are over a total of 1,607,830 shares which relate to grants made in 2023 and 2024. The awards will remain eligible to vest on their normal vesting dates, each subject to a pro-rata reduction to reflect the period from grant to 31 May 2025 relative to three years, and the application of performance targets.

In accordance with the rules of the LTIP, any vested shares will remain subject to the terms of the Plan which include a two year holding period from vesting and malus and clawback provisions.

Jackie Callaway currently holds 725,133 vested but unexercised shares which, for the reasons described above, will remain eligible to be exercised up until one month following the end of the relevant holding period.

Any accrued dividend equivalents will be paid in the form of additional shares.

Contribution to legal costs

Jackie Callaway will receive a contribution not exceeding £3,000 in respect of the legal costs incurred in relation to this cessation of employment.

Further information

Relevant remuneration details will be disclosed for Jackie Callaway in the Annual Report & Accounts for the financial year ending 31 December 2025. Other than the items referenced above, Jackie Callaway will not receive any remuneration payments or payments for loss of office.

Jackie Callaway is contractually bound to hold the lower of 200% of her base salary and her actual holdings, if lower for two years following cessation of employment.

In accordance with section 430(2B) of the Companies Act 2006, the information contained in this document has been made available on the company’s website until such time as the Company’s Annual Report & Accounts for the financial year ending 31 December 2025 is made available.