IGO Interactive Annual Report 2019

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2019 HOW PERFORMANCE WAS LINKED TO STIP OUTCOMES IN FY19 As part of the annual business planning process the Board determines the KPIs to reflect targets for the key strategic drivers of the business for the following year. The KPIs and performance achieved against them for FY19 are listed in the table below: Key Result Area Rationale for inclusion Performance and commentary SAFETY, HEALTH, ENVIRONMENT AND COMMUNITY 10% weighting 10% achieved • Year-on-year improvement in safety related metrics in the Engagement Survey • Year-on-year improvement in Group TRIFR • Group HSEC strategic actions including: –– rewrite of IGO’s Group Safety Standards (https://www.igo.com.au/site/work- with-us/suppliers-information); –– the ongoing promotion of IGO’s visual safety leadership program; –– the introduction of an enterprise risk management system; –– the introduction of a Mental Health & Wellbeing Strategy; and –– the implementation of a community engagement strategy. A range of backward and forward-looking measures focuses performance on metrics that go directly and indirectly to efficiently and effectively managing the risks inherent in the Company’s operations. Above target performance was achieved for: • Safety related metrics in the Engagement Survey – achieved 90% (Target = 86%) • Group TRIFR – achieved 9.58 (Target = 14.18) • Group HSEC strategic actions all completed to plan. PEOPLE AND CULTURE 15% weighting 10% achieved Deliver year-on-year improvement in: • Annual Engagement Survey Score • Diversity metrics for the female and aboriginal employment across the business. Engagement and diversity metrics are designed to focus achievement on key strategic people enablers and programs of work that result in a workforce that has the motivation, skills and capabilities to drive the delivery of the Company’s strategic plan. The Company achieved above target performance for the Engagement Survey score: Engagement Survey Score 70% (Target = 60%) Targets for the delivery of year-on-year improvement for diversity metrics were challenged throughout the year resulting in: • 25% Female employment (Target = 32.5%) • 3% Aboriginal employment (Target = 3.5%) Although improvement was challenged in overall gender and aboriginal employment significant improvement was achieved in the promotion and development of women across the business where 27% of internal promotions were awarded to female candidates and 60% of manager roles were awarded to internal female candidates. GROWTH/STRATEGY* 30% weighting 25% achieved Complete nominated number of agreed strategic priorities. Outlines performance achieved to deliver a suite of strategic initiatives, brownfields/ greenfields opportunities and value accretive M&A opportunities important to growing shareholder value along with performance in achieving the organic growth of current assets. Good progress achieved for all strategic priorities PRODUCTION 25% weighting 25% achieved Achieve consolidated production targets for Nova on a nickel metal equivalent basis Target = 42,577 tonnes Delivery of strong production performance is a key enabler to funding the achievement of the Company’s strategic plan. The production outcome of 43,951 nickel metal equivalent tonnes achieved at Nova represented a strong operational result in excess of the target performance for FY19. FINANCIAL 20% weighting 10% achieved Achieve consolidated capital and operating costs (production and non-production) for the Group Target = $343M total capital and operating costs Strong budgeting and financial management is a key enabler to funding the achievement of the Company’s strategic plan. Achieved better than targeted capital costs but did not achieve targeted operating costs: • Capital $42.3M (Target = $54.1M) • Operating $338M (Target = $289M) Total weighting 100% Total outcome 80% KRA measure achieved KRA measure partially achieved KRA measure not met *Due to the sensitive nature of some corporate KPIs the full detail on measures and achievement is confidential. 50 — IGO ANNUAL REPORT 2019