ClearView Annual report 2024

Notes to the Financial Statements

Fair value of performance and restricted rights

The fair value of performance rights granted during the year was determined using the following key inputs and assumptions: Performance rights 2024 2 2023 1 Share price at grant date $0.55 $0.48 Exercise price Nil Nil Volatility 51.1% 46.5% Dividend yield 5.82% 7.02% Anticipated performance right life (years) 3.83 3.44 Present value of future expected dividends 0.1306 0.09 Fair value at grant date - Market conditions 3 $0.228 - $0.268 $0.19 Fair value at grant date - Non-market performance conditions $0.42 $0.39 Restricted rights 2024 2023 Fair value at grant date $0.48 $0.74 1 The 2023 target is based on a TSR from 1 July 2022 to 30 June 2026 for 50% performance rights and an Embedded Value (EV) as at 30 June 2026 for 50% performance rights. A Monte Carlo simulation methodology has been selected for the fair value of the TSR rights. The fair value of the EV rights was calculated as the value of the ordinary shares in ClearView on the grant date less the present value of the expected dividends over the expected terms of the rights. 2 The 2024 target is based on a TSR from 1 July 2023 to 30 June 2027 for 50% performance rights and an Embedded Value (EV) as at 30 June 2027 for 50% performance rights. A Monte Carlo simulation methodology has been selected for the fair value of the TSR rights. The fair value of the EV rights was calculated as the value of the ordinary shares in ClearView on the grant date less the present value of the expected dividends over the expected terms of the rights. 3 The 2024 market condition performance rights include 2 tranches, in which one tranche is stretch and offered to only one employee. The fair values of tranche 1 and tranche 2 (stretch) are $0.268 and $0.228, respectively. The fair value is determined using appropriate methods including Monte Carlo simulations, share price less present value of dividend, depending on the vesting conditions. Some of the input or assumptions used may be based on historical data which is not necessarily indicative of future trends. The fair value of restricted rights granted during the year was determined based on the fair value of the Company’s shares at the grant date or for the deferred component of the STVR, at the end of the previous financial year.

Executive Share Plan

Details of the number of ESP shares granted, vested and transferred, and forfeited during the year are as follows: 2024 2023

Weighted average exercise price $

Number of shares 16,633,432 (8,523,505) (2,000,000) 6,109,927

Number of shares 18,133,432

Balance at the beginning of the financial year

0.71

0.71 1.09 0.56 0.71

Forfeited during the year Exercised during the year

0.68 (1,500,000)

0.51

—

0.81 16,633,432

Balance at the end of the financial year

The shares were priced using a binomial option pricing model with volatility based on the historical volatility of the share price.

Share based payment expense

Total expenses arising from share based payment awards under the LTVR amounted to $0.3 million (net of the reversal of expenses for forfeiture of LTVRs during the year) (2023: -$0.2 million mainly due to the reversal of FY20 LTIP reserve as a result of non-market performance conditions not being met), of which no amount (2023: nil) is included in the results of discontinued operations. STVR deferred component (restricted rights) expense of $0.5 million (2023: $0.5 million) is included in employee expenses.

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ClearView Annual Report 2024