IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 24 Events occurring after the reporting period On 29 August 2019, the Company announced a final dividend of 8 cents per share, franked to 97%, to be paid on 26 September 2019. Other than the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years, other than as stated elsewhere in the financial report. Other information This section of the notes includes other information that must be disclosed to comply with the accounting standards and other pronouncements, but are not considered critical in understanding the financial performance or position of the Group. 25 Share-based payments The Group provides benefits to employees (including executive directors) of the Group through share-based incentives. Information relating to these schemes is set out below. (a) Employee Incentive Plan The Independence Group NL Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting of the Company in November 2016. The EIP incorporates both broad based equity participation for eligible employees as well as key executive incentive schemes designed to provide long-term incentives to senior management (including executive directors) to deliver long-term shareholder returns. The EIP comprised the following schemes during the current financial year: • Long-term incentive (LTI) - performance rights; • Service rights; • Employee share ownership award; and • Employee salary sacrifice share plan. LTI - Performance Rights Under the LTI scheme, participants are granted share rights which will only vest if certain performance conditions are met and the employees are still employed by the Group at the end of the vesting period. Participation in the LTI scheme is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. Equity settled awards outstanding Set out below are summaries of share rights granted under the LTI scheme: 2019 2018 Number of share rights Weighted average fair value at grant date Number of share rights Weighted average fair value at grant date Outstanding at the beginning of the year 2,042,619 2.14 1,648,285 2.00 Rights issued during the year 953,229 2.67 1,246,722 2.46 Rights vested during the year (281,388) 1.34 - - Rights lapsed during the year (326,175) 1.51 (622,637) 2.34 Rights cancelled during the year (19,144) 2.28 (229,751) 2.22 Outstanding at the end of the year 2,369,141 2.54 2,042,619 2.14 Independence Group NL 44 Notes to the consolidated financial statements 30 June 2019 (continued) 25 Share-based payments (continued) Equi y settled awards u standing (continued) The share-based payments expense relating to performance rights included in profit or loss for the year totalled $1,883,700 (2018: $2,034,404). Fair value of performance rights granted The fair value of the share rights granted during the year ended 30 June 2019 are determined using a trinomial tree which has b en adopted by the Boyle and Law (1994) node alignment algorithm to improve accuracy, with the following inputs: Fair value inputs CEO Senior management Other employees Grant date 23 November 2018 28 September 2018 28 September 2018 Vesting date 1 July 2021 1 July 2021 1 July 2021 Share price at grant date 3.89 4.66 4.66 Fair value estimate at grant date 2.17 2.81 2.81 Expected share price volatility (%) 47 48 48 Expected dividend yield (%) 1.29 1.07 1.07 Expected risk-free rate (%) 2.11 2.08 2.08 IGO ANNUAL REPORT 2019 — 111