Page 13 - Shell 2022 Negotiations 20.05.2022

6/ PRIORITY 3: VALUE IMPROVEMENT & KPIS

We will pivot to a culture of strong bottom line cost focus, whilst maintaining safety
standards.

As negotiated between AUK and Shell, we will work to the guaranteed value
obligations as a scalable model. The Value targets AUK will work to are: 5.0% 2022/
2023; 5.4% 2023/ 2024 and 5.7% 2024/ 2025.

With inflation increasing to a rate of circa 4.5% - 5.5%, we believe targets to be
ambitious yet not completely out of reach.

We also propose that Shell opens the sharing available by increasing the share
rewards to greater incentivise the team to hit and exceed the targets.

By adjusting the targets and increasing the sharing mechanism Artelia are
committed to:
• Put in place a benchmark scorecard “Minimum bonus pre-requisites table in
the VI section of the contract” – In effect, in a normal year if we cannot hit these
benchmark targets then AUK will be unable to share in any Value Improvement
bonus. We would like to caveat that this should not apply to the KPI bonus.

• Setting up a clearer bonus structure guidelines with greater emphasis on
accountability within the team.

• Setup a VI rule book to aide in creating clearer guidelines for the partnership to
work to – Developed by the Artelia Leadership team (Paris).

• Indirect items - Artelia have proposed to exclude GFA items and AUK fees from
the total VI calculation e.g. VI savings total as a % - VI% = (Total savings) / (CAPEX
+ OAC - GFA items - AUK fees). This will allow the business to focus on items they
can have a larger influence on.