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FLEXIGROUP LIMITED FINANCIAL REPORT 2011
TSR performance target The performance hurdle set by the Board in relation to each Tranche is based on TSR growth
of the Company measured against other companies in the S&P/ASX 300 Index (not including
resources companies) TSR growth for the relevant performance period.
The TSR for FlexiGroup will be determined by calculating the amount by which the sum of:
• the 30 day volume weighted average price (“
VWAP
”) for FlexiGroup shares in the period
up to and including 30 June at the end of the relevant performance period; and
• the dividends paid on a FlexiGroup share during the relevant performance period,
exceeds the 30 day VWAP for FlexiGroup shares in the period up to and including 1 July
at the beginning of the relevant performance period, expressed as a percentage.
Nil
– if the Company’s TSR ranked in the 4th quartile (i.e. 76th to 100th ranking) of companies
in S&P/ASX 300 Index (excluding resources companies).
25%
– if the Company’s TSR equals performance of the 75th ranking company in S&P/ASX 300
Index (excluding resources companies).
Pro-rata between 25% and 50%
– if the Company’s TSR ranked in the 3rd quartile (i.e. 51st
to 75th ranking) of companies in S&P/ASX 300 Index (excluding resources companies).
Pro-rata between 50% and 100%
– if the Company’s TSR ranked in the 2nd quartile (i.e. 26th
to 50th ranking) of companies in S&P/ASX 300 Index (excluding resources companies).
100%
– if the Company’s TSR ranked in the 1st quartile (i.e. 1st to 25th ranking) of companies
in S&P/ASX 300 Index (excluding resources companies).
Why vesting conditions
were chosen
The vesting conditions were chosen as performance conditions as they refect, at the date
they were granted, the generation of signifcant shareholder value.
Vesting date
Tranche 1 – 1 December 2012
Tranche 2 – 1 December 2013
Tranche 3 – 1 December 2014
Exercise period
Tranches 1, 2 & 3 – From vesting date to expiry date
Expiry date
Tranche 1 – 31 December 2014
Tranche 2 – 31 December 2015
Tranche 3 – 31 December 2016
Disposal restriction
No disposal restriction imposed at the time of this grant.
Retesting – performance rights – Basic EPS
If the Basic EPS performance rights vesting condition is not met for any Tranche 1 performance rights when measured on
the testing date for performance rights performance period 1 and those Tranche 1 performance rights have not otherwise
lapsed, those Tranche 1 performance rights may be exercised during the performance rights exercise period for Tranche 2
performance rights if the Basic EPS hurdle is met on the testing date for performance rights performance period 2.
If the Basic EPS performance rights vesting condition is not met for any Tranche 2 performance rights when measured on the
testing date for performance rights performance period 2 and those Tranche 2 performance rights have not otherwise lapsed,
those Tranche 2 performance rights may be exercised during the performance rights exercise period for performance rights
Tranche 3 if the Basic EPS hurdle is met on the testing date for performance rights performance period 3.
There is no retesting for Tranche 3 performance rights if the Basic EPS performance rights vesting condition is not met for
any Tranche 3 performance rights when measured on the testing date for performance rights performance period 3.
Retesting – performance rights – TSR
If the TSR performance rights vesting condition is not met for any Tranche 1 performance rights when measured on the
testing date for performance rights performance period 1 (as set out above) and those Tranche 1 performance rights have
not otherwise lapsed, those Tranche 1 performance rights may be exercised during the performance rights exercise period
for Tranche 2 performance rights if the TSR hurdle is met on the testing date for performance rights performance period 2.
For these purposes, the performance rights performance period will be from 1 July 2011 (the beginning of performance
rights performance period 1) to 30 June 2013 (the end of performance rights performance period 2).