CSL Ltd Annual Report 2019

CSL Limited Annual Report 2019 123 Valuation assumptions and fair values of equity instruments granted The model inputs for performance share units, restricted share units and GESP awards granted during the year ended 30 June 2019 included: Fair Value 9 Share Price Exercise Price Expected volatility 10 Life assumption Expected dividend yield Risk free interest rate A$ A$ A$ Performance Share Units (by grant date) 1 September 2018 – Tranche 1 $223.06 $225.41 Nil 17.97% 12 months 1.05% 1.99% 1 September 2018 – Tranche 2 $221.72 $225.41 Nil 20.45% 24 months 1.05% 1.95% 1 September 2018 – Tranche 3 $219.41 $225.41 Nil 20.17% 36 months 1.05% 2.25% 1 September 2018 – Tranche 4 $216.13 $225.41 Nil 20.24% 48 months 1.05% 2.34% 1 March 2019 – Tranche 1 $187.94 $189.05 Nil 26.71% 6 months 1.17% 1.84% 1 March 2019 – Tranche 2 $185.75 $189.05 Nil 21.43% 18 months 1.17% 1.70% 1 March 2019 – Tranche 3 $183.60 $189.05 Nil 21.94% 30 months 1.17% 1.79% 1 March 2019 – Tranche 4 $181.47 $189.05 Nil 21.28% 42 months 1.17% 1.89% Restricted Share Units (by grant date) 1 September 2018 – Tranche 1 $225.41 $225.41 Nil N/A Nil 1.05% 1.50% 1 September 2018 – Tranche 1 $224.24 $225.41 Nil 17.97% 6 months 1.05% 1.99% 1 September 2018 – Tranche 2 $223.06 $225.41 Nil 17.94% 12 months 1.05% 1.99% 1 September 2018 – Tranche 2 $221.89 $225.41 Nil 20.45% 18 months 1.05% 1.95% 1 September 2018 – Tranche 3 $220.72 $225.41 Nil 20.33% 24 months 1.05% 2.04% 1 September 2018 – Tranche 3 $219.57 $225.41 Nil 20.17% 30 months 1.05% 2.25% 1 September 2018 – Tranche 4 $218.41 $225.41 Nil 20.12% 36 months 1.05% 2.13% 1 September 2018 – Tranche 4 $216.13 $225.41 Nil 20.24% 48 months 1.05% 2.34% 1 March 2019 – Tranche 1 $189.05 $189.05 Nil 26.71% 6 months 1.17% 1.84% 1 March 2019 – Tranche 1 $187.94 $189.05 Nil 23.60% Nil 1.17% 1.50% 1 March 2019 – Tranche 2 $186.85 $189.05 Nil 21.43% 18 months 1.17% 1.70% 1 March 2019 – Tranche 2 $185.75 $189.05 Nil 23.60% 12 months 1.17% 1.74% 1 March 2019 – Tranche 3 $184.68 $189.05 Nil 21.94% 30 months 1.17% 1.79% 1 March 2019 – Tranche 3 $183.60 $189.05 Nil 20.58% 24 months 1.17% 1.78% 1 March 2019 – Tranche 4 $181.47 $189.05 Nil 21.28% 42 months 1.17% 1.89% NED Rights (by grant date) 23 August 2018 – Tranche 1 $215.17 $216.28 Nil 19.42% 6 months 1.05% 1.98% 23 August 2018 – Tranche 2 $214.05 $216.28 Nil 17.94% 12 months 1.05% 1.98% GESP (by grant date) 11 1 September 2018 $72.65 $210.65 $138.00 20.0% 6 months 1.75% 1.75% 1 March 2019 $37.44 $198.13 $160.69 20.0% 6 months 1.50% 1.75% 9 PSUs are subject to a ROIC based performance measure. 10 The expected volatility is based on the historic volatility (calculated based on the remaining life assumption of each equity instrument), adjusted for any expected changes. 11 The fair value of GESP equity instruments is estimated based on the assumptions prevailing on the grant date. In accordance with the terms and conditions of the GESP plan, shares are issued at a 15% discount to the lower of the ASX market price on the first and last dates of the contribution period.