INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) Developments for FY17 (continued) (i) Executive Management Remuneration • no increase to Director's fees; • increase to the Managing Director's TFR of 6.7% to $800,000*; • no general increase to Executive TFR, with the exception of the Chief Growth Officer and the Chief Financial Officer who both received an increase of 7.7% to $420,000*; • increase in the potential STI opportunity for the Managing Director to 70% of TFR and a decrease in LTI opportunity to 70% of TFR*; • increase in the potential STI opportunity for executives to 30-50% of TFR and decrease in LTI opportunity to 20-40% of TFR*. * Note: the above increases were in line with market comparison data and took into account the additional responsibilities that came with the growth of the Company. • alteration to the payment structure of STIs to be paid as a part cash payment (50%) and part service rights (50%) to further align the interests of shareholders and management teams. Service rights will vest in two tranches, with the first tranche of 50% vesting after 12 months following the award and the second tranche of 50% vesting after 24 months. • introduction of a claw-back provision for any unvested STI and LTI awards in the case of fraud, dishonesty, gross misconduct or a material misstatement of the financial statements and subject to Board discretion; and • continuation of a three year measurement period for LTI and the introduction of a gateway process for LTI vesting to provide the Board with the overriding discretion to adjust the LTI vesting if TSR is negative over the period. (ii) Group-wide Remuneration • payment of a competitive and equitable TFR that incorporates a “pay for performance” consideration with no general CPI increase awarded; • a revised benchmarking policy and reward grade system using a simplified Paterson Band type structure implemented across the organisation to provide greater transparency and clarity to all employees with regard to the remuneration philosophy and structure; • levels of STI opportunity revised for the STI program, to ensure the Company remains competitive with its peer group for at-risk remuneration; and • successful launch of the Employee Share Ownership Award to increase the level of employee share ownership and connection to shareholders. FY17 Executive Management Remuneration Remuneration for FY17 consisted of a mix of: • total fixed remuneration (TFR); and • at-risk remuneration, comprising STIs and LTIs. The mix of fixed and at-risk remuneration varies depending on the role and grading of Executives. It also depends on the performance of both the Company and the individual. Total fixed remuneration (TFR) Individual KMPs TFR for FY17 were as follows: Independence Group NL 17 48 — IGO ANNUAL REPORT 2017 DIRECTORS’ REPORT 30 JUNE 2017 (continued)