Fraser & Neave Holdings Bhd Annual Report 2020

194 FRASER & NEAVE HOLDINGS BHD 196101000155 (4205-V) Notes to The Financial Statements (Cont’d.) 16. CAPITAL AND RESERVES (CONTINUED) (D) SHARE GRANTS UNDER RSP AND PSP (COLLECTIVELY, THE “SGP”) (CONTINUED) RSP (continued) The following table illustrates the number and movements in RSP grants: Number of share grants At 1.10.2019/ grant date Adjustment for achievement factor Vested * Forfeited At 30.9.2020 Vesting period RSP 2016 (5.1.2016) 82,575 – (82,575) – – 31.12.2017– 31.12.2019 RSP 2017 (22.12.2016) 129,700 – (64,375) (3,375) 61,950 31.12.2018– 31.12.2020 RSP 2018 (22.12.2017) 278,500 (17,400) (130,550) (1,650) 128,900 31.12.2019– 31.12.2021 RSP 2019 (22.12.2018) 357,300 (127,300) – (16,400) 213,600 31.12.2020– 31.12.2022 RSP 2020 (23.12.2019) 514,400 – – (18,500) 495,900 31.12.2021– 31.12.2023 1,362,475 (144,700) (277,500) (39,925) 900,350 * Share grants forfeited upon cessation of employment. No awards were granted to Directors of the Company. The estimated fair value of shares granted during the financial year ranges from RM31.62 to RM33.06. The fair value of equity-settled contingent award of shares are determined using the Monte Carlo Valuation Model, which involves projection of future outcomes using statistical distributions of key random variables including share price and volatility of returns. The inputs to the model used are as follows: RSP 2020 2019 2018 2017 Dividend yield (%) 2.33 2.34 2.72 3.34 Expected volatility (%) 13.30 16.35 11.56 12.67 Risk-free interest rate (%) 2.95-3.14 3.56-3.80 3.21-3.59 3.58-3.87 Expected term (years) 2.02-4.02 2.03-4.03 2.02-4.03 2.02-4.03 Share price at date of grant (RM) 34.66 31.34 26.38 22.86 PSP Information regarding the PSP: (i) Depending on the achievement of pre-determined targets set for a three-year performance period for the PSP, the final number of PSP shares awarded could range between 0% to 200% of the initial grant of the PSP Base Award. (ii) All of the PSP shares under the Final Award will be released to the participants at the end of the three-year performance period upon vesting. As at 30 September 2020, no shares were granted under the PSP.