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 he Underlying 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 om par a t or peer c ompanies which include 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 T he T SR me asur emen t is c on tingen t upon per f ormanc e o f the C ompan y agains t c ompanies c omprising the A SX 100 Inde x a t the s t ar t o f the per f ormanc e period 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 R OCE is calcula t ed as Underlying Earnings be f or e In t er es t and T a x EBIT o v er the thr ee 3 y e ar per f ormanc e period divided b y C apit al Emplo y ed e xpr es sed as a per c en t age C apit al Emplo y ed T o t al Shar eholders E quit y Ne t Deb t the sum o f the simple a v er ages o f the balanc es a t the beginning and end o f e ach y e ar during the per f ormanc e period T he cumula tiv e per f ormanc e hur d les ar e as ses sed a t the t es ting da t e and the a t risk L TI c omponen t bec omes e x er cis able or is f or f eit ed b y the e x ecutiv e a t this time Ne w o f f ers o f par ticipa tion ar e r a tifed b y the Boar d a f t er r ec om menda tion b y the P eople C ommitt ee Expenses r ec ognised as emplo y ee c os ts in r ela tion t o shar e based pa ymen ts T he f air v alue o f servic es r ec eiv ed in r e turn f or L TIP righ ts gr an t ed during the y e ar ended 31 M ar ch 2019 is based on the f air v alue o f the righ ts gr an t ed me asur ed using Binomial T r ee EPS EBITD A and R OCE hur d les and servic e c ondition and Mon t e C arlo Simula tion T SR hur d le v alua tion me thod ologies with the f ol lo wing inputs E quit y se ttled righ ts Gr an t ed 2019 Gr an t ed 2018 Gr an t ed 2017 Da t e o f gr an t 1 Augus t 2018 20 July 2017 26 July 2016 W eigh t ed a v er age f air v alue a t da t e o f gr an t o f per f or manc e hur d le righ ts 698 621 430 Shar e pric e a t da t e o f gr an t 830 718 509 Expec t ed v ola tilit y 37 40 45 Expec t ed lif e 29 y e ars 30 y e ars 29 y e ars Risk fr ee in t er es t r a t e 212 201 149 Dividend yield 270 240 300 C ash se ttled righ ts Gr an t ed 2019 Gr an t ed 2018 Gr an t ed 2017 Da t e o f gr an t 1 Augus t 2018 20 July 2017 26 July 2016 W eigh t ed a v er age f air v alue a t da t e o f gr an t o f per f or manc e hur d le righ ts 698 621 430 Shar e pric e a t da t e o f gr an t 830 718 509 Expec t ed v ola tilit y 37 40 45 Expec t ed lif e 29 y e ars 30 y e ars 29 y e ars Risk fr ee in t er es t r a t e 212 201 149 Dividend yield 270 240 300 T he f air v alue o f the liabilit y f or cash se ttled righ ts f or which per f ormanc e hur d le t es ting da t es r emain in the futur e is r eme asur ed a t e ach r epor ting da t e Servic e based righ ts ha v e been is sued during FY2019 t o some k e y managemen t personnel KMP under the Shor t T erm Inc en tiv e P lan in r espec t o f de f err ed c ompens a tion e arned f or S TI outper f ormanc e during FY2018 T hese Servic e 81 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 F INANCIAL S T A TEMENT S N O TES T O THE FINANCIAL S T A TEMENT S Emplo ymen t ma tt ers