INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) Developments for FY18 (continued) Executive management remuneration (continued) • increases in LTI levels to achieve improved connection between long-term shareholder value creation and the executive team through heavier weighting of at-risk reward in favour of LTI and following independent mining industry benchmarking and trends. Review of the Company's comparator group and industry remuneration trends indicate the potential for greater alignment of Executive performance and long-term value creation for shareholders when “at-risk” remuneration is more heavily weighted to the award of LTI benefits. As such the Board and Committee have chosen to adjust Executive STI/LTI percentages in favour of an increased LTI opportunity for FY18. The following table reflects remuneration components available to Executives effective 1 July 2017: TFR FY18 Potential STI 5 Potential LTI Name Position $ % 6 % 6 Peter Bradford 1 Managing Director 800,000 70 110 Keith Ashby 2 Head of Governance & Risk 350,000 35 50 Rob Dennis 3 Chief Operating Officer (COO) 500,000 50 80 Matt Dusci 4 Chief Growth Officer (CGO) 500,000 50 80 Sam Retallack 2 Head of People & Culture 350,000 35 50 Scott Steinkrug 4 Chief Financial Officer (CFO) 450,000 50 80 1. No increase in TFR. Increase in LTI from 70%. 2. Increase in TFR from $333,975. Increase in LTI from 20%. 3. Increase in TFR from $498,225. Increase in LTI from 40%. 4. Increase in TFR from $420,000. Increase in LTI from 40%. 5. No increase in STI levels. 6. Potential STI and LTI are based on a % of TFR comprising base salary and superannuation only. If maximum at-risk remuneration were to be earned for FY18, the percentage of fixed to at-risk remuneration would be as follows: Summary of Remuneration Annual Components for Executive Management, if all at risk payments are made Company performance and remuneration A key and continued focus for the Board and Company is to align its Executive remuneration to the strategic and business objectives of the Group and the creation of shareholder value. The table below shows measures of the Group's financial performance over the last five years as required by the Corporations Act 2001 . These measures are not necessarily consistent with the measures used in determining the at-risk amounts of remuneration to be awarded to KMPs as other internal measures are used to drive these results. 2017 2016 2015 2014 2013 Revenue ($ millions) 421.9 413.2 495.3 399.1 225.9 Profit for the year attributable to owners ($ millions) 17.0 (58.8) 76.8 48.6 18.3 Dividends payments (cents per share) 3.0 2.5 11.0 7.0 5.0 Share price at year end ($ per share) 3.15 3.28 4.17 4.35 2.26 Independence Group NL 24 IGO ANNUAL REPORT 2017— 55 DIRECTORS’ REPORT 30 JUNE 2017 (continued)