Capital allocation

The Board of Directors of Evolution published a Capital allocation Framework during 2024. The framework builds upon the Company’s strong history of capital returns to shareholders. Returns have been primarily through dividend but also through re-purchase of shares. The goal of the Capital Allocation Framework is to clarify the Board’s priorities and underline Evolution’s commitment to drive shareholder value over the long-term.

We aim to be in a net cash position over time, with an ability to deploy modest short term leverage for unique shareholder value enhancing opportunities. We are a highly profitable business as a market leader with a best-in-class product in a growing global industry, supported by strong long-term secular tailwinds. Our first priority will be to invest in growing our existing business organically.

Dividend policy

We adopted a dividend policy at the time of our IPO in 2015 to distribute a minimum dividend of 50 percent of net profits annually.

Mergers and Acquisitions

M&A can be a way to support our existing business and/or our long-term vision. M&A can include acquiring companies, technologies, IP rights or other assets. All M&A will be done at financial terms that are long-term value enhancing to our shareholders and our operations. The Company continuously evaluates M&A opportunities, but no set annual amount will be allocated to M&A.

Repurchase of own shares

Historically there has been excess cash after investments in the ongoing business, dividends and M&A. The Board has decided to distribute 100 percent of excess cash, exclusive of any aforementioned M&A activity. The distribution of this excess capital will generally be done through the repurchase of own shares.

The Board will annually seek authorisation from the Annual General Meeting to repurchase own shares up to an amount so that the holding of own shares does not exceed 10 percent of all shares in the Company from time to time. The Board will then make decisions on when to use that authorisation during the year in order to maximise the return for our shareholders.

The Board will endeavour to distribute excess cash in the most value enhancing way possible. There are times when repurchases of own shares are more value enhancing and there can be situations where extra dividends are preferred. In those cases the Board may

decide to pay a special divided which will be decided upon at the Annual General Meeting or at an Extraordinary General Meeting.