Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 06 Financial Statements 181 NOTES TO THE FINANCIAL STATEMENTS 15. CAPITAL AND RESERVES (CONTINUED) (D) SHARE GRANTS UNDER RSP AND PSP (COLLECTIVELY, THE “SGP”) (CONTINUED) RSP (continued) The following table illustrates the number and movements in RSP grants: Number of share grants At 1.10.2018/ grant date Adjustment for achievement factor Vested * Forfeited At 30.9.2019 Vesting period RSP 2015 (15.1.2015) 98,900 – (93,800) (5,100) – 31.12.2016– 31.12.2018 RSP 2016 (5.1.2016) 181,350 – (87,500) (11,275) 82,575 31.12.2017– 31.12.2019 RSP 2017 (22.12.2016) 464,600 (180,740) (129,700) (24,460) 129,700 31.12.2018– 31.12.2020 RSP 2018 (22.12.2017) 469,900 (154,400) – (37,000) 278,500 31.12.2019– 31.12.2021 RSP 2019 (21.12.2018) 371,700 – – (14,400) 357,300 31.12.2020– 31.12.2022 1,586,450 (335,140) (311,000) (92,235) 848,075 * Share grants forfeited upon cessation of employment. No awards were granted to Directors of the Company. The estimated fair value of shares granted during the financial year ranges from RM15.51 to RM21.43. The fair value of equity-settled contingent award of shares are determined using the Monte Carlo Valuation Model, which involves projection of future outcomes using statistical distributions of key random variables including share price and volatility of returns. The inputs to the model used are as follows: RSP 2019 2018 2017 2016 Dividend yield (%) 2.34 2.72 3.34 3.62 Expected volatility (%) 16.35 11.56 12.67 8.36 Risk-free interest rate (%) 3.56-3.80 3.21-3.59 3.58-3.87 2.98-3.52 Expected term (years) 2.03-4.03 2.02-4.03 2.02-4.03 1.99-3.99 Share price at date of grant (RM) 31.34 26.38 22.86 18.50 PSP Information regarding the PSP: (i) Depending on the achievement of pre-determined targets set for a three-year performance period for the PSP, the final number of PSP shares awarded could range between 0% to 200% of the initial grant of the PSP Base Award. (ii) All of the PSP shares under the Final Award will be released to the participants at the end of the three-year performance period upon vesting. As at 30 September 2019, no shares were granted under the PSP.