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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
149
28. Employee benefits (cont’d.)
(b) SGP (cont’d.)
As disclosed in Note 25, share grants vested during the financial year resulted in the issuance of 908,000 (2013: 588,000) ordinary shares of RM0.50 each.
The weighted average share price at the date of vesting for the financial year was RM7.87 (2013: RM7.42).
The outstanding share grants at the end of the financial year are to be vested on specific dates in the following periods:
(i) The 2012 grant is to be vested within the next year.
(ii) The 2013 grants are to be vested within the next 2 years.
(iii) The 2014 grants are to be vested within the next 3 years.
Fair value of shares granted during the financial year
The fair values of shares granted during the financial year were measured at grant date and the assumptions were as follows:
(i) The fair value of RSP shares granted during the year was estimated using a discounted cash flow model, taking into account the vesting conditions
upon which the RSP shares were granted. The weighted average share price at the grant date was RM7.76 (2013: RM7.45). An average expected
dividend yield of 5.5% (2013: 4.7%) was used in measuring the fair values.
(ii) The performance conditions for the PSP includes a non-market based hurdle and a market based hurdle. The non-market based hurdle is valued using
a discounted cash flow model while the market based hurdle uses assumptions underlying the Black-Scholes methodology to produce a Monte-Carlo
simulation. The key assumptions used in these models are as follows:
2014
2013
Share price
RM7.80
RM7.56
Expected dividend yield
5.0%
4.9%
Expected volatility
18.0%
18.0%
Risk free rate
3.5%
3.3%
29. Deferred grants
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
At 1 January
7,768
9,934
4,779
5,934
Grant income (Note 4)
(2,750)
(2,166)
(1,078)
(1,155)
Received during the year
175
-
175
-
At 31 December
5,193
7,768
3,876
4,779
The deferred grants of the Group refer to grants for the development of the bond trading platform, the development of clearing facilities, licence for the order
management system for the derivatives market and Environmental, Social and Governance (ESG) index. The deferred grants of the Company refers to the grant
for the development of the bond trading platform and ESG index. There are no unutilised conditions or contigencies attached to these grants.