CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 133 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 2020 included: Fair Value 8 Share Price Exercise Price Expected Volatility 9 Life Assumption Expected Dividend Yield Risk-free Interest Rate A$ A$ A$ Performance Share Units (by grant date) 1 September 2019 – Tranche 1 $232.89 $235.31 Nil 24.40% 12 months 1.03% 0.66% 1 September 2019 – Tranche 2 $230.50 $235.31 Nil 21.48% 24 months 1.03% 0.73% 1 September 2019 – Tranche 3 $228.14 $235.31 Nil 21.87% 36 months 1.03% 0.72% 1 September 2019 – Tranche 4 $225.80 $235.31 Nil 21.32% 48 months 1.03% 0.80% 1 March 2020 – Tranche 1 $314.88 $316.27 Nil 20.63% 6 months 0.86% 0.62% 1 March 2020 – Tranche 2 $312.15 $316.27 Nil 22.91% 18 months 0.86% 0.49% 1 March 2020 – Tranche 3 $309.45 $316.27 Nil 21.00% 30 months 0.86% 0.42% 1 March 2020 – Tranche 4 $306.76 $316.27 Nil 21.39% 42 months 0.86% 0.48% Restricted Share Units (by grant date) 1 September 2019 – Tranche 1 $235.31 $235.31 Nil N/A Nil 1.03% 1.00% 1 September 2019 – Tranche 1 $234.10 $235.31 Nil 21.15% 6 months 1.03% 0.85% 1 September 2019 – Tranche 1 $232.89 $235.31 Nil 24.40% 12 months 1.03% 0.66% 1 September 2019 – Tranche 2 $231.70 $235.31 Nil 22.94% 18 months 1.03% 0.64% 1 September 2019 – Tranche 2 $230.50 $235.31 Nil 21.48% 24 months 1.03% 0.73% 1 September 2019 – Tranche 3 $229.33 $235.31 Nil 20.78% 30 months 1.03% 0.72% 1 September 2019 – Tranche 3 $228.14 $235.31 Nil 21.87% 36 months 1.03% 0.72% 1 September 2019 – Tranche 4 $226.98 $235.31 Nil 21.54% 42 months 1.03% 0.76% 1 September 2019 – Tranche 4 $225.80 $235.31 Nil 21.32% 48 months 1.03% 0.80% 1 March 2020 – Tranche 1 $316.27 $316.27 Nil N/A 0 months 0.86% 0.75% 1 March 2020 – Tranche 1 $314.88 $316.27 Nil 20.63% 6 months 0.86% 0.62% 1 March 2020 – Tranche 2 $313.56 $316.27 Nil 20.65% 12 months 0.86% 0.50% 1 March 2020 – Tranche 2 $312.15 $316.27 Nil 22.91% 18 months 0.86% 0.50% 1 March 2020 – Tranche 3 $310.81 $316.27 Nil 22.91% 24 months 0.86% 0.49% 1 March 2020 – Tranche 3 $309.45 $316.27 Nil 21.00% 30 months 0.86% 0.49% 1 March 2020 – Tranche 4 $306.76 $316.27 Nil 21.39% 42 months 0.86% 0.42% Rights (by grant date) 22 August 2019 – Tranche 1 $229.22 $230.46 Nil 21.20% 6 months 1.10% 1.01% 22 August 2019 – Tranche 2 $227.92 $230.46 Nil 24.38% 12 months 1.10% 0.87% 20 February – Tranche 1 $331.29 $332.64 Nil 19.00% 6 months 0.79% 0.83% GESP (by grant date) 10 1 September 2019 – Tranche 1 $ 78.11 $240.87 $162.76 20.00% 6 months 1.75% 1.75% 6 March 2020 – Tranche 1 $108.37 $309.44 $201.70 20.00% 6 months 1.50% 1.75% 8 PSUs are subject to a ROIC based performance measure 9 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 10 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.