2018 A w ar d Hur d les C ompound annual dilut ed Underlying EPS gr o w th April 2018 t o M ar ch 2021 Pr opor tion o f per f ormanc e righ ts tha t ma y be e x er cised if Underlying EPS gr o w th hur d le is me t L es s than 6 per annum 0 Be tw een 6 and 10 per annum S tr aigh t line v es ting be tw een 125 and 25 o f t o t al gr an t 10 or higher per annum 25 o f t o t al gr an t Underlying EBITD A mar gin o f ALS r ela tiv e t o Underlying EBITD A mar gin o f c ompar a t or peer c ompanies April 2018 t o M ar ch 2021 Pr opor tion o f per f ormanc e righ ts tha t ma y be e x er cised if Underlying EBITD A hur d le is me t L es s than the 50 th per c en tile 0 Be tw een the 50 th and 75 th per c en tile S tr aigh t line v es ting be tw een 125 and 25 o f t o t al gr an t 75 th per c en tile or higher 25 o f t o t al gr an t C ompar a t or peer c ompanies Bur e au V erit as F r anc e C or e L abor a t ories US A Eur o fns F r anc e In t er t ek UK SGS S witz erland Mis tr as US A and Applus Spain T SR o f ALS r ela tiv e t o T SR o f c ompanies in A SX 100 Inde x o v er the period April 2018 t o M ar ch 2021 Pr opor tion o f per f ormanc e righ ts tha t ma y be e x er cised if T SR hur d le is me t L es s than the 50 th per c en tile 0 Be tw een 50 th per c en tile and 75 th per c en tile S tr aigh t line v es ting be tw een 125 and 25 o f t o t al gr an t 75 th per c en tile or higher 25 o f t o t al gr an t R OCE P er f ormanc e 3 y e ar a v er age o v er the period April 2018 t o M ar ch 2021 Pr opor tion o f per f ormanc e righ ts tha t ma y be e x er cised if R OCE hur d le is me t Belo w 114 0 Be tw een 114 and 164 S tr aigh t line v es ting be tw een 0 and 25 o f t o t al gr an t A t or abo v e 164 25 o f t o t al gr an t B ased on ALS M ar ch 2018 pr e t a x Nominal W A C C midpoin t Me asur emen t o f the L TI P lan Hur d les 2016 2019 a w ar d Underlying Earnings per Shar e EPS T he gr o w th in e arnings per shar e is calcula t ed b y c ompar ing the dilut ed underlying EPS fr om c on tinuing oper a tions achie v ed b y the Gr oup in the base y e ar e g y e ar t o M ar ch 2018 with tha t achie v ed in the fnal y e ar o f the per f or manc e period e g y e ar t o M ar ch 2021 Dilut ed EPS is calcula t ed b y dividing the underlying ne t pr o ft a f t er t a x a ttribut able t o shar eholders o f ALS Limit ed b y the w eigh t ed a v er age number o f or dinary shar es on is sue f or the y e ar being me asur ed dilut ed f or outs t anding equit y se ttled per f ormanc e righ ts F ol lo wing fnalis a tion o f ALS fnancial r esults f or FY201819 the c ompound annual gr o w th r a t e C A GR in the C ompan y s dilut ed underlying EPS o v er the thr ee y e ar period t o M ar ch 2019 w as 197 per c en t fr om 217 c en ts t o 371 c en ts which is abo v e the ma ximum thr eshold o f a 9 per c en t incr e ase T hus al l the 2016 a w ar d righ ts subjec t t o the EPS hur d le wil l v es t on 1 July 2019 Underlying Earnings be f or e In t er es t T a x Depr ecia tion and Amor tis a tion EBITD A T he EBITD A mar gin me asur emen t is c on tingen t upon per f ormanc e o f the C ompan y agains t a gr oup o f c ompar a t or peer c ompanies tha t ar e c omprised o f our k e y global c ompe tit ors C umula tiv e Underlying Earnings be f or e In t er es t T a x Depr ecia tion and Amor tis a tion EBITD A is calcula t ed as a per c en t age o f r e v enue o v er the thr ee y e ar per f ormanc e period T his is c ompar ed with the cumula tiv e EBITD A mar gins r epor t ed b y e ach o f the peer c ompanies f or the thr ee fnancial y e ars ending on or be f or e 31 M ar ch o f the y e ar o f v es ting F ol lo wing fnalis a tion o f ALS fnancial r esults f or FY201819 the underlying EBITD A mar gin achie v ed b y the C ompan y o v er the thr ee y e ar period t o M ar ch 2019 w as 1961 per c en t A s sho wn in T able 8 this plac ed ALS a t the 50 th per c en tile when r ank ed within the gr oup o f indus try peer c ompanies T hus al l the righ ts subjec t t o the EBITD A hur d le 25 per c en t o f the t o t al number pos sible wil l v es t on 1 July 2019 33 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 L ong T erm Inc en tiv e P lan audit ed