Ex ecutiv e R emuner a tion S tr a t egy Summary 201819 audit ed ALS GR OUP VISION T o pr o vide as sur anc e t o our clien ts thr ough the adv anc emen t o f scienc e and r ele v an t t echnologies Our goal is t o de v elop our s t a f f and t o pr o t ec t them the en vir onmen t and our s t ak eholders fr om harm tha t migh t r esult fr om our ac tivities With this appr oach w e en vision sus t ainable gr o w th and c onsequen t shar eholder v alue cr e a tion T r ansla t ed in t o Gr oup S tr a t egy and de v eloped in t o gr oup s truc tur e plans and policies GR OUP S TRA TE G Y T he Gr oup s fv e y e ar S tr a t egic P lan driv es al l ac tivities in the busines s Each y e ar an annual busines s plan is pr epar ed f or e ach Busines s Unit which e xamines the c omponen ts tha t wil l need t o be achie v ed during the y e ar and longer t erm goals ar e r ecalibr a t ed and ad jus t ed as r equir ed T he Gr oup s fiv e y e ar S tr a t egic P lan is tr ansla t ed t o the r emuner a tion s tr a t egy tha t wil l as sis t the Gr oup in achie ving its financial and o ther busines s goals EXE CUTIVE REW ARD S TRA TE G Y T r anspar en t link t o individual per f ormanc e Ad jus t ed annual ly in r esponse t o e xt ernal changes R e asonable f air and equit able Pr o vides a sus t ainable pla tf orm f or gr o w th Deliv er ed thr ough the r emuner a tion c omponen ts o f Fix ed and V ariable r emuner a tion a t t ar ge t REM UNERA TION C O MPONENT S M anaging Dir ec t or Ex ecutiv e KMP A v er age Fix ed R emuner a tion including cash pension and bene fts 455 569 Shor t T erm Inc en tiv es cash based a t t ar ge t 273 216 L ong T erm Inc en tiv es equit y based a t t ar ge t 273 216 Oper a tional Risk M anagemen t is built in t o the r emuner a tion policies MANA GING RISK S TI f or f eitur e de f err al and cla wback pr o visions Boar d discr e tion f or un f or eseen c onditions KPIs include s a f e t y Financial ga t e w a ys ensur e a f f or dabilit y Aligns t o e xt ernal peer pa y le v els f or e x ecutiv e a ttr ac tion and r e t en tion R emuner a tion is designed t o align e x ecutiv e r e w ar d t o gr o w th in shar eholder v alue ALIGNMENT WITH SHAREHOLDER S S TI Financial KPIs r equir e fnancial gr o w th agains t las t y e ar s per f ormanc e t o pa y out a t t ar ge t Use o f f our balanc ed L TI P lan me asur es T SR EBITD A EPS and R OCE pr omo t es sus t ainable per f ormanc e Global and local P eer per f ormanc e c omparisons f or f air as ses smen t R emuner a tion par tly r ec eiv ed in equit y S TI KPIs r e w ar d impr o v ed financial and HSE out c omes SHOR T TERM INCENTIVES 1 Y e ar per f ormanc e P eriod P o t en tial v alue 150 o f the e x ecutiv e s S TI quan tum 70 o f the r e w ar d is se t agains t Financial KPIs with an outper f ormanc e KPI o f up t o an additional 50 de f err ed t o equit y 10 o f the r e w ar d is se t agains t He alth S a f e t y En vir onmen t KPIs 20 is r eserv ed f or s tr a t egic initia tiv es and o ther KPIs and t o al lo w f or Boar d discr e tion T he L TI is c on tingen t on multiple per f ormanc e me asur es t o ensur e sus t ainable per f ormanc e and aligns k e y e x ecutiv es financial out c omes with Shar eholder in t er es ts L ONG TERM INCENTIVES 3 Y e ar per f ormanc e P eriod Hur d le 3 R ela tiv e EBITD A mar gin agains t indus try peers Hur d le 1 EPS Gr o w th Hur d le 2 T SR agains t A SX100 peers Hur d le 4 R OCE S tr engthened thr ough r obus t go v ernanc e GO VERNANCE Independen t Dir ec t ors Boar d has ultima t e discr e tion o v er al l r e w ar d c omponen ts Ext ernal r emuner a tion advisors ar e appoin t ed and r epor t t o the Boar d T able 2 23 ALS LIMITED AND IT S SUBSIDIARIES A NNU AL F INANCIAL R EPOR T F OR THE Y EAR E NDED 31 M AR CH 2019 F INANCIAL REPOR T D IRE CT ORS REPOR T R EM UNERA TION REPOR T Ex ecutiv e R emuner a tion S tr a t egy Summary 201819 audit ed