Driving efficiency and high performance

Organisation effectiveness

Organisation Governance model

Cellnex has recently undergone a strategic review aiming to enhance efficiency. This reevaluation includes significant shifts in the organisation's approach to align with the evolving needs and context.

Cellnex has repositioned its strategy towards organic growth, accompanied by fundamental structural changes. These adjustments involve granting greater autonomy and empowerment to matured countries, reducing their reliance on central support structures. This enables local offices to make decisions independently within established guidelines, in addition to reporting as Country CEOs to the Cellnex CEO.

The company has also refocused its commercial activities. While major markets receive concentrated efforts on existing business lines, smaller countries now prioritise specific services to minimise commercial risks.

As part of the organisational restructuring, Cellnex has established a dedicated Strategy division responsible for driving business planning, transformation and market intelligence initiatives, alongside the creation of a COO, leading Commercial, Sales Excellence & Marketing, Innovation and Technology, together with Operational Excellence and IT Services. These organisational reforms demonstrate Cellnex’s commitment to enhanced focus and increased efficiency. These changes are aligned with the company's digitalisation efforts, ultimately contributing to a more streamlined and effective organisational framework.

Job levelling

In order to make robust People decisions and apply all People policies and processes coherently, Cellnex has a job levelling methodology that evaluates each position based on its responsibilities, contributions and position within the organisational structure. Through this process, the company can differentiate between key contribution, commercial and management career paths. The job categories range from support positions to senior management and the CEO, and depend on different career paths. The outcome, a job level assigned to each position, is the basis for many other People processes, including HPM[25], training and development, and rewards. As an example, during the HPM process each employee is assessed based on the Cellnex Leadership Attributes which are different depending on the job level, considering positions with different responsibilities and contributions.

[25] Holistic Performance Management

Holistic Performance Management

Holistic Performance Management (HPM) implies the continuous development of Cellnex's people, aligning the leadership style to the purpose, values and DNA, and continuing to improve year by year. This Model holistically measures Employees’ performance by valuing their Individual Contribution, assessing not only the results obtained but also the leadership attributes developed. Its main goal is to ensure that Cellnex achieves its business goals with every employee aligned and focused on the activities that bring the most value to the company.

Cellnex builds its own future leaders with an assessment, relevant Individual Development Plans and solid succession plans. The company encourages all employees to drive their development, together with their manager and with the support of the People Department. In 2023, more than 2,325 people created an Individual Development Plan (IDP).

In 2023, more than 2,744 employees participated in the HPM process, defining and evaluating their contribution to the company via goals and assessing their performance based on its Leadership Model.

The annual process starts with goal-setting; participating employees are assigned group and country goals, if applicable. The country goals indicate to which extent the different countries contribute to the company results. In parallel, employees create their Individual Development Plans (IDP), in agreement with their line manager, which is a tool to help them to reinforce their strengths and work on their improvement areas, always taking into account their career aspirations.

Throughout the year, both parts of the process, goals and IDP, are continuously evaluated and reviewed. As a year-end task, an annual performance review of both aspects is also conducted. Both employees and their managers evaluate the level of achievement of the various goals as well as how they were achieved based on the leadership attributes defined in the Cellnex Leadership Model. The results of this annual evaluation impact any rewards and serve as an input for the start of the follow year’s evaluation process.

Cellnex fosters a continuous improvement performance culture, rewarding employees according to their contribution to the business and demonstrated leadership attributes. Results are linked to compensation, thereby actively encouraging a high-performance culture. Therefore, the results of the employees’ annual leadership attributes assessment influence their bonus pay-outs and annual merit salary reviews.

Reward and remuneration

The main goal of the Remuneration Policy is to attract, engage and motivate talent, allowing Cellnex to meet its strategic objectives within the increasingly competitive and international framework in which it operates. This is achieved by establishing the most appropriate measures and practices for this purpose. The general principles that underpin the Remuneration Policy are as follows:

Alignment with Company strategy and stakeholders' interests

Aligning employees’ interests with those of shareholders links a significant part of the total remuneration to company results and the creation of long-term value for shareholders.

Variable remuneration combines financial and business targets with the achievement of ESG goals in line with Cellnex’s ESG Master Plan. In 2023, all employees integrated a component of ESG-linked metrics into group and/or country targets, which complement individual ones.

Competitiveness

To enhance engagement, employee compensation needs to remain competitive. This is accomplished by devising a remuneration package aligned with market norms, considering similar sectors and companies.

Because of this, compensation and benefits benchmarks are conducted regularly by a specialist consulting firm (Willis Towers Watson). In 2023 benefits have been harmonised across various countries, based on the study conducted in 2022. In Spain, negotiations have been conducted with employee representatives to implement the Flexible Compensation Plan for all employees in 2024.

Remuneration must be sufficient to attract and retain the talent desired by the Company. All compensation elements are maximised to support each employee's journey and secure business results. In fact, Cellnex guarantees to pay above the legal minimum wage, ensuring a living wage for all Cellnex employees. For example, in the UK Cellnex is accredited as a Living Wage Employer and in Spain the lowest paid employee is paid 40% above the legal minimum wage. In all countries where legal minimum wage is mandatory, Cellnex pays over it.

Structural

• Annual salary review – paying for performance according to both merit and the market
• Short-Term Incentive Plan – rewarding achievement of annual business objectives.
• Benefits – attracting and engaging employees.

Discretionary

• Long-Term Incentive Plan – retaining potential and key talent.
• Lump Sum – recognising special contributions on an ad-hoc basis.

Equity and fairness

Cellnex has a job levelling system that defines position tiers across the company, taking into consideration the responsibilities, scope, qualifications, experience and profile required for each job level. This provides consistency and is key to defining compensation levels.

Individual remuneration must be consistent and fair, taking an employee’s level of responsibility, qualifications and results into account.

One of the key pillars of Cellnex's compensation strategy is equal pay, which is also aligned with Cellnex values: equal pay ensures fairness in remuneration based on the level of responsibility, leadership and performance within the organisation, helping to retain key professionals and attract the best talent.

Associated with Cellnex's Equity, Diversity and Inclusion commitments, Cellnex conducts regular gender pay analysis to ensure equal opportunities and rewards across the

company. Every year the company performs a global assessment to guarantee equity and fairness using the Willis Towers Watson methodology. Whenever inconsistencies are detected, measures are taken to mitigate them.

Pay for performance

Compensation based on performance entails connecting remuneration to attaining financial, business and value creation goals, in line with Cellnex's corporate interests. The HPM,

defined in 2022 and fully implemented in 2023, links employees’ performance to their remuneration, by making “what” they achieve just as important as “how” they achieve it.

In short, this Remuneration policy, along with the HPM, supports the strategic principles defined above by ensuring:

• An integrated and consistent Reward Model
• Internal equity and competitiveness
• Differentiation according to contribution
• Payment for performance

Sales Incentive Plan

An updated Incentive for Sales and Commercial teams, aligned with organic growth, has been designed and is ready to be deployed in 2024.

This Incentive is embedded in Holistic Performance Management and tailored by Sales Critical Role.

Therefore it will ensure results and sustainability, and will engage and motivate Sales teams to over-perform.

Smart Working

The company fosters a culture of self- leadership, effectiveness and collaboration. Cellnex drives efficiency to obtain more impact with less effort, providing the IT tools and time management habits necessary to do so. Cellnex works in a collaborative environment, meaning that any employee’s point of view is enriched by that of their colleagues. Collaboration among team members fortifies the company, enabling it to confront new challenges more effectively.

Cellnex has smart workplaces that foster these ways of working and promote flexibility: your workplace is wherever you are, your work adapts to your pace, and Cellnex integrates remote working in a natural way.