2021 Annual Report

HOW PERFORMANCE WAS LINKED TO STIP OUTCOMES IN FY21 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. In FY21, significant progress was made in achieving Company KPIs and a range of other related programs of work, however the final result was not achieved for several Key Result Areas (KRAs). Company Scorecard Gating • No Production Optimisation or Financial Performance component in the event of Company NPAT being negative before abnormals • No Growth and Strategy component in the event of a material downward restatement of the previous year’s Reserves • No Health, Safety, Environment and Community or People and Culture component in the event of a fatality, permanent disabling injury and/or material environmental breach • The discretion to reduce KPI outcomes by up to 100% of the cash component of variable incentives in the event of occurrence of any event that is classified as “catastrophic” in the Company’s Risk Matrix; and • The discretion to reward outstanding performance that falls outside of the existing KPI program for teams or individuals that have created significant additional value for shareholders and/or employees. Individual KPI Gating No individual component in the event of a material breach of the Company’s Code of Conduct by the individual. FY21 Scorecard The KPI Scorecard for Executive KMP and performance achieved against the specific KPIs for each KRA for FY21 are listed in the table below. Company Key Result Area (KRA) Rationale for inclusion Performance and commentary Health, Safety, Environment and Community 15% weighting 56% achieved (8.4% outcome) • TRIFR • Critical Control Verification • Closeout of Corrective Actions • Safety related Engagement Survey items; and • Safety Management programs. The application of a range of forward and backward looking measures focus effort on culture and system improvements to better manage the workplace health and safety risks inherent to the Company’s operations. The Company is focused on providing a work environment that supports and cares for our people and the communities and environment in which we work. In FY21, significant improvements were made in all business units achieving the following results: • TRIFR = 16.0 (Threshold = 17.5, Target = 16.6); • Critical Control Verification = 80% (Threshold = 90%, Target = 100%); • Closeout of Corrective Actions = 92% (Threshold = 90%, Target = 100%); • Safety related Engagement Survey items = 89% (Threshold = 78%, Target = 82%); and • Safety Management programs = 95% (Threshold = 90%, Target = 100%) People and Culture 15% weighting 70% achieved (10.5% outcome) • Annual Engagement Survey Score • Diversity and Inclusion Score • Diversity metrics for female and Aboriginal employment across the business; and • Learning and development plan completion. Engagement, diversity and development metrics are designed to focus achievement on key strategic people enablers and programs of work that result in a workforce that has the balance of diversity of skills and capabilities to drive the delivery of the Company’s strategic plan. Improvements were made across the business with programs of work to strengthen the culture and to improve the diversity and inclusion of all business units achieving the following performance levels: • Engagement Survey score 67% (Threshold = 69%, Target = 72%) • Diversity and inclusion score 86% (Threshold = 82%, Target = 86%) • 27% Female employees (Threshold = 24%, Target = 27%) • 3% Aboriginal employment (Threshold = 3%, Target = 3.5%) • 95% Learning and development plans completed (Threshold = 80%, Target = 90%) Production Optimisation and Financial Performance 30% weighting 78% achieved (23.3% outcome) Achieve consolidated production targets for Nova on a nickel metal equivalent basis. Achieve consolidated operating costs (production and non- production) for the Group (excluding non-controlled operations). Delivery of strong production and financial performance is a key enabler to funding the achievement of the Company’s strategic plan. The production outcome achieved at Nova represented a solid operational result with improvements in a range of operational metrics, including: Nickel metal production from Nova of 29.0kt (Threshold = 27.3kt, Target = 29.3kt) Controllable payable nickel unit costs of $2.32 (Threshold = $2.51, Target = $2.38) Group operating and capital costs of $334M (Threshold = $349M, Target = $332M) IGO ANNUAL REPORT 2021— 55