52 Directors’ Report The following summarises the performance of the Group over the last five years: Effective from 1 July 2012, the Group implemented an STI Plan. The objectives of the STI Plan are to link the remuneration of certain executives to their  performance and the performance of the Group. The Board set key performance measures and indicators for individual executives on an annual basis that  reinforce the Group’s business plan and targets for the year. Key features of the STI Plan are outlined in the following table. Overview of the STI Plan Short-Term Incentives 2009 2010 2011 2012 2013 Revenue (‘000s) 113,015 175,480 172,356 357,372 329,282 Net profit / (loss) after income tax (‘000s) 32,522 73,066 20,879 75,006 (323,726) Share price at year end ($ / share) 6.70 9.47 8.00 4.85 1.265 Dividends paid (cent / share) 15.0 35.0 15.0 20.0 5.0 KMP short term employee benefits 3,882 2,943 4,459 4,456 4,671 What is the STI plan and  who participates? The STI Plan is a potential annual reward for eligible executive key management personnel for achievement of predetermined individual  key performance indicators (KPIs) aligned to the achievement of business objectives for the assessment period (financial year  commencing 1 July). How much can the executives earn under the STI Plan? Threshold  – Represents the minimum acceptable level of performance that needs to be achieved before any Individual Award would be  payable in relation to that Performance Measure. Managing Director / CEO – up to 15% of TFR, COO & CFO – up to 12.5% of TFR, Other Key Management Personnel – up to 10% of TFR. Target  – Represents a challenging but achievable level of performance relative to past and otherwise expected achievements. It will  normally be the budget level for financial and other quantitative performance objectives.  Managing Director / CEO – up to 30% of TFR, COO & CFO – up to 25% of TFR, Other Key Management Personnel – up to 20% of TFR. Stretch (Maximum)  – Represents a clearly outstanding level of performance which is evident to all as a very high level of achievement. Managing Director / CEO – up to 60% of TFR, COO & CFO – up to 50% of TFR, Other Key Management Personnel – up to 40% of TFR. (TFR - Total Fixed Remuneration) What are the performance conditions? For Key Management Personnel between 70% – 80% of potential STI weighting (dependent upon role) is assessed against specific  predetermined KPIs by role with 20% – 30% being based on company performance indicators. How are performance  targets set and  assessed? Individual performance targets are set by the identification of key achievements required by role in order to meet business objectives  determined for the upcoming assessment period in advance. The criteria for Key Management Personnel are recommended by the  Managing Director/CEO for sign off by the Remuneration Committee and in the case of the Managing Director/CEO, are recommended  by the Chairman by sign off by the Remuneration Committee.  The relative achievement at the end of the financial period is determined by the above authorities with final sign off by the Remuneration  Committee after confirmation of financial results and individual/company performance against established criteria. The Remuneration Committee is responsible for assessing whether the KPIs are met. To assist in this assessment, the committee  receives detailed reports on performance from management which are verified by independent remuneration consultants if required.  The committee has the discretion to adjust STIs in light of unexpected or unintended circumstances. How is the STI delivered? STIs are paid in cash after the conclusion of the assessment period and confirmation of financial results/individual performance and  subject to tax in accordance with prevailing Australian tax laws. What happens in the  event of cessation of  employment? Unvested rights are forfeited on dismissal for cause. In all other termination circumstances any unvested rights granted in the year of the  cessation of employment are forfeited in the proportion that the remainder of the year bears to a full year. Unvested rights that are not  forfeited are retained by the participant and are subsequently tested for vesting at the end of the vesting period. www.kingsgate.com.au