Outlook f or 201920 FY R emuner a tion unaudit ed No changes ar e pr oposed t o the o v er al l r emuner a tion fr ame w ork and ins trumen ts T he S TI P lan KPIs f or FY2020 ar e as f ol lo ws Financial KPIs a t le as t 70 per c en t o f the S TI pa ymen t wil l be dependen t on the fnancial per f ormanc e including wher e ap pr opria t e deb t or managemen t o f the C ompan y or Busines s S tr e am r esults r ele v an t t o the e x ecutiv e s r ole A s in pr e vious y e ars e x ecutiv es wil l be able t o e arn up t o an additional 50 per c en t o f their S TI oppor tunit y f or fnancial outper f ormanc e In addition t o achie ving the thr eshold per f ormanc e r equir emen t o f the Financial KPIs in or der t o a tt ain their ful l S TI pa ymen t KMP e x ecutiv es wil l need t o achie v e a A He alth S a f e t y En vir onmen t al KPI w or th 10 per c en t o f the S TI pa ymen t b A Busines s Alignmen t KPI f ocused on the OneALS and ALS Experienc e initia tiv es w or th 10 per c en t o f the S TI pa ymen t c A Discr e tionary KPI w or th 10 per c en t o f the S TI pa ymen t T he purpose o f this KPI is t o al loca t e r e w ar d agains t specifc s tr a t egic initia tiv es In the case o f the CE O up t o 25 per c en t o f the KPI pa ymen t wil l r ela t e t o the achie v emen t o f specifc s tr a t egic KPI s se t b y the Boar d T he L TI P lan hur d les c omprising EPS gr o w th R ela tiv e T SR R ela tiv e EBITD A and R OCE wil l c on tinue f or the FY2020 a w ar ds K orn F erry w er e engaged b y the Boar d t o c onduc t job sizing f or the KMP r oles during the FY2018 r e vie ws f ol lo wing the r es truc tur e o f the e x ecutiv e t e am F ol lo wing on fr om this w ork and c ognis an t o f the incr e ased demand f or e xperienc ed e x ecutiv es in the TIC indus try the Boar d has de t ermined t o a w ar d fx ed r emuner a tion incr e ases t o c er t ain KMP t o r ec ognise the incr e ase in the siz e and sc ope o f their r oles and t o align them t o mark e t T o t al fx ed r emuner a tion f or Ex ecutiv es wil l be ad jus t ed on a v er age b y 59 per c en t and f or the CE O b y 3 per c en t with e f f ec t fr om 1 July 2019 During FY2020 the Boar d wil l c ommis sion a r e vie w o f S TI and L TI P lans t o ensur e tha t the y ar e aligned t o mark e t T o t al f ees f or Dir ec t ors wil l r emain unchanged f or FY2020 f ol lo wing the r e vie w o f f ees and the o v er al l f ee pool tha t w as c on duc t ed during 2018 T he Dir ec t ors belie v e tha t these ad jus tmen ts wil l c on tinue t o deliv er a f air out c ome f or e x ecutiv es with a s tr ong link t o shar e holder v alue and sus t ainable gr o w th C onsult a tion with shar eholder advisory gr oups and use o f e xt ernal specialis t c onsult an ts wil l c on tinue t o be a f e a tur e o f our r emuner a tion s tr a t egy and pr oc es s in t o the futur e End o f r emuner a tion r epor t 39 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