AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

21 SHARE-BASED PAYMENT PLANS (CONTINUED) (a) Earnings Per Share Growth hurdles are as follows:

Issued in FY20

Issued in FY21 and FY22

Issued in FY23

AAGR EPS

EPS vesting

AAGR EPS

EPS vesting

CAGR EPS

EPS vesting

less than 5%

NIL

less than 7%

NIL

less than 7%

NIL

5%

50%

7%

50%

7%

50%

5-7%

50% - 100%

7-10%

50%- 100%

7-12%

50%- 100%

7% or more

100%

10% or more

100%

12% or more

100%

(b) TSR hurdles for all grant years are as follows: Relative TSR performance is assessed over a three-year period which commences at the start of the financial year during which the PSRs are granted. For any PSRs to vest pursuant to the Relative TSR vesting condition, AUB Group’s compound TSR must be equal to or greater than the median ranking of constituents of the Peer Comparator Group. TSR PSRs will be measured by comparing the TSR of the Company with the TSRs of the constituents of the S&P/ASX Small Ordinaries Industrials Index (AXSID) (Comparator Group). Hurdles for TSRs issued after 1 July 2021 Less than 50th percentile of the Comparator Group, 0% of the PSRs will vest. 50th percentile of the Comparator Group, 50% of the PSRs will vest. Between 50th percentile and 75th percentile of the comparator Group, between 50% and 100% of the PSRs will vest. 75th percentile of the Comparator Group or higher, 100% of the PSRs will become vest. (c) Return on Invested Capital (ROIC) The ROIC vesting condition for PSRs granted during FY23 is measured based on the average annual ROIC achieved from 1 July 2022 (the start of the performance period) to 30 June 2025 (being the final year of the performance period). ROIC in each year is calculated as EBITA Less Tax, divided by Average Invested Capital, defined as follows:

EBITA Less Tax

Underlying NPAT plus interest expense (net of interest received from operating bank account) as per consolidated accounts after tax

Invested Capital The sum of equity attributable to equity holders of the parent and interest-bearing borrowings and loans, less cash and cash equivalents (excluding cash held in trust). Average Invested Capital (Invested Capital at financial year end + Invested Capital at previous financial year end)/2 3 year average ROIC Simple average of ROIC in each of the 3 years of the performance period

The percentage of ROIC PSRs that may vest is determined based on the following vesting schedule.

3 year average ROIC

PSRs subject to ROIC vesting condition that vests (%)

Less than 11%

0%

11%

50%

Greater than 11% to less than 12%

Straight line between 50% and 100%

12% or more

100%

AUB GROUP ANNUAL REPORT 2023

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