Shor t T erm Inc en tiv e P lan audit ed T he Boar d se ts the ma ximum amoun ts which can be e arned as an S TI f or e ach e x ecutiv e and also appr o v es the e x ecu tiv e KMP S TI P lan sc or ecar ds annual ly KPIs ar e s truc tur ed so tha t the y ar e he a vily w eigh t ed t o fnancial per f ormanc e with s a f e t y also a manda t ory KPI T her e is a por tion o f the t o t al po t en tial pa ymen t tha t is discr e tionary P a ymen ts t o the CE O a t t ar ge t ar e se t a t 60 per c en t o f his fx ed r emuner a tion and pa ymen ts f or o ther e x ecutiv e KMP a t t ar ge t ar e be tw een 35 per c en t and 40 per c en t o f their fx ed r emuner a tion S TI pa ymen ts ar e c on tingen t on the achie v emen t o f spec ifed fnancial and o ther per f ormanc e indica t ors KPIs f or the fnancial y e ar as f ol lo ws G ate w a y In or der t o ensur e tha t Shar eholder r e w ar d is aligned t o the e x ecutiv es o wn r e w ar d the Gr oup o v er al l mus t ha v e me t or e x c eeded the underlying NP A T achie v ed the pr e vious FY be f or e the e x ecutiv e s o wn KPIs wil l yield a pa ymen t Ex c ep tions ma y be made b y the Boar d wher e an individual e x ecutiv e has achie v ed an outs t anding fnancial r esult Financial KPIs F or the e x ecutiv e KMP the fnancial hur d les w or th 70 per c en t o f the t ar ge t quan tum ar e se t f or the busines s units tha t ar e within the e x ecutiv e s spher e o f c on tr ol T he fnan cial KPIs including the outper f ormanc e KPIs ar e NP A T EBIT gr o w th orien t ed NonFinancial KPIs 30 per c en t o f the po t en tial S TI t ar ge t quan tum is depend en t on non fnancial KPIs including s tr a t egic KPIs He alth s a f e t y the en vir onmen t and risk managemen t ar e a manda t ory KPI as in pr e vious y e ars T his KPI which is se t a t 10 per c en t o f the t ar ge t S TI quan tum is me asur ed agains t the P ositiv e P er f ormanc e Indica t or PPI Sc or ecar d o f he alth s a f e t y and en vir onmen t al le ad indica t ors A minimum sc or e o f 90 per c en t on the PPI is r equir ed t o achie v e the HSE KPI F or the e x ecutiv e KMP 10 per c en t o f the t ar ge t S TI quan tum is a t the discr e tion o f the CE O F or the CE O 20 per c en t o f the t ar ge t S TI quan tum is a t the discr e tion o f the Boar d and ma y be used t o al loca t e s tr a t egic plan KPI s tha t need t o be achie v ed T o ensur e close managemen t o f cash fo w and po t en tial bad deb ts a deb t or da ys KPI se t a t 10 per c en t w as also included f or r ele v an t e x ecutiv e KMP Unles s the Boar d e x er cises its discr e tion under e x c ep tional cir cums t anc es no S TI pa ymen ts ar e made if the e x ecutiv es fnancial thr eshold r equir emen t is no t me t Outper f ormanc e and E quit y De f err al T he S TI plan includes a de f err ed equit y c omponen t if c er t ain fnancial outper f ormanc e s tr e t ch t ar ge ts ar e achie v ed and a servic e c ondition is me t T hose who a tt ain the outper f ormanc e fnancial KPIs wil l ha v e additional S TI pa ymen ts de f err ed in t o Servic e Righ ts righ ts t o ALS shar es upon ma turit y T he period o f de f err al is tw o y e ars and the e x ecutiv e mus t be s til l emplo y ed on 1 April tw o y e ars henc e 2021 in the case o f the 201819 FY t o r ec eiv e the shar es R e f er fnancial s t a t emen ts no t e 8a f or fur ther de t ails W her e the c oun try o f as signmen t has legisla tion tha t w ould pr e v en t al loca tion o f shar es this w ould be held as de f err ed cash f or the s ame period Ex ecutiv es ar e able t o e arn up t o 150 per c en t o f their t ar ge t S TI quan tum f or outper f ormanc e including the de f err ed elemen t NonP a ymen t and Cla wbacks P a ymen ts ar e no t made t o e x ecutiv es f ound t o ha v e mis r epr esen t ed their fnancial and non fnancial KPI r esults Misr epr esen t a tions disc o v er ed a f t er an S TI pa ymen t has been made wil l r equir e the e x ecutiv e ha ving t o r e turn the pa ymen t t o the C ompan y 28 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 Shor t T erm Inc en tiv e P lan audit ed