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FINANCIAL REPORTS
167
Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
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 1,094,000 (2014: 908,000) ordinary shares of
RM0.50 each. The weighted average share price at the date of vesting for the financial year was RM7.24 (2014: RM7.87).
The outstanding share grants at the end of the financial year are to be vested on specific dates in the following periods:
(i) The 2013 grant is to be vested within the next year.
(ii) The 2014 grants are to be vested within the next 2 years.
(iii) The 2015 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 RM8.27 (2014: RM7.76). An
average expected dividend yield of 5.3% (2014: 5.5%) was used in measuring the fair values.
(ii) The performance conditions for the PSP include 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:
2015
2014
Share price
RM8.20
RM7.80
Expected dividend yield
4.9%
5.0%
Expected volatility
16.0%
18.0%
Risk free rate
3.3%
3.5%
29. Deferred grants
Group
Company
2015
2014
2015
2014
RM’000
RM’000
RM’000
RM’000
At 1 January
5,193
7,768
3,876
4,779
Grant income (Note 4)
(1,281)
(2,750)
(1,253)
(1,078)
Received during the year
175
175
175
175
At 31 December
4,087
5,193
2,798
3,876