Please see attached.

Page 1 of 3

Thorn Group Limited
ABN 54 072 507 147





Appendix 4E

RESULTS FOR ANNOUNCEMENT TO THE MARKET

YEAR ENDED 31 MARCH 2020












This information is the information required under ASX Listing Rule 4.3A.


Contents
1. Appendix 4E
2. Annual financial statements for the year ended 31 March 2020


Page 2 of 3
Appendix 4E Preliminary Final Report under ASX Listing Rule 4.3A


Current year: 1 April 2019 to 31 March 2020
Previous corresponding year: 1 April 2018 to 31 March 2019



RESULTS FOR ANNOUNCEMENT TO THE MARKET

Year ended 31 March 2020
$’000s
31 March 2019
$’000s
% Change
Revenue from ordinary activities-
Continuing operations
204,299 221,857 Down 7.9%
(Loss)/ Profit from discontinued
operation, net of tax
- 3,182 N/A
Reported net profit / (loss) after tax (81,068) (14,965) Down 441.7%


A brief explanation of the above figures, a commentary on the financial performance and position, and other
Appendix 4E disclosures can be found in the annual financial statements for the year ended 31 March 2020.



DIVIDENDS
Amount per
ordinary share
Franked amount
per ordinary share

Interim dividend

Nil Nil
Final dividend (declared, not yet provided at 31 March 2020) Nil Nil



NET TANGIBLE ASSETS 31 March 2020 31 March 2019
Net tangible assets per ordinary share 33 cents 104 cents


Entities over which control has been gained or lost during the period

Nil






Page 3 of 3
Compliance statement

This report is based on the consolidated financial report which has been audited.

Refer to the attached full financial report for all other disclosures in respect of the Appendix 4E.







Warren McLeland
Chairman


Date 29 May 2020











ACN 072 507 147
Annual
Report
31 March 2020
Annual Report 2020 I 1
CONTENTS
Directors’ Report 2
Lead Auditor’s Independence Declaration 23
Consolidated Statement of Profit or Loss and Other Comprehensive Income 24
Consolidated Statement of Financial Position 25
Consolidated Statement of Changes in Equity 26
Consolidated Statement of Cash Flows 27
Notes to the Consolidated Financial Statements 29
Directors’ Declaration 60
Independent Auditor’s Report 61
DIRECTORS’ REPORT
For the year ended 31 March 2020
2 I Thorn Group
The directors present their report together with the financial report of Thorn Group Limited (the ‘Company’) and its controlled
entities (together referred to as ‘Thorn’, the ‘Group’ or the ’consolidated entity’) for the financial year ended 31 March 2020
and the auditor’s report thereon.
PREFACE
The year for Thorn has been an eventful one, with changes in its substantial shareholders, a new board of directors, the
appointment of a new CEO, the departure of other members of senior management, the settlement of the class action, a
capital raising, and the COVID-19 pandemic.
Thorn’s board of directors and its CEO have taken significant decisions to seek to best position the Company for the future.
These include the permanent closure of all Radio Rentals stores (which had been temporarily closed to mitigate some of the
effects of COVID-19), a significant tightening, until the economic and funding situation becomes clear, of the criteria of new
facilities in the Business Finance division, which has decreased the number of new facilities and the total amount advanced,
and a significant number of the Company’s staff becoming redundant.
At the mid-year point, a loss for the full year was anticipated after the $26 million charge for the class action settlement. The
write off a substantial number of debts in the Business Finance division in the second half added additional expense. The
announcement of the closure of the Radio Rentals stores changed the carrying value of certain assets and liabilities in that
division including inventory and finally the emergence of COVID-19 then prompted Thorn to take up further provisions to
reduce the valuation of assets, primarily receivables under lease contracts, on the balance sheet down to their current carrying
amounts in accordance with accounting standards.
In the absence of historical evidence from which to position a provision for expected losses from the effects of COVID-19, the
board of directors has had to determine suitable provisions based on judgement and advice from management and advisers.
The method chosen and the results are explained further in the financial statements. The outcomes were a $22.1 million
provision for Business Finance and a $13.5 million provision for Consumer Leasing.
It was then determined not to take up all the deferred tax benefit attributable due to the size of the available tax losses and the
difficulty in forecasting the Company’s future profitability to be able to fully utilise them.
This is a substantial list of changes to the Company’s business and the financial statements and takes the result for the year to a
loss of $(81.1) million.
OPERATING AND FINANCIAL REVIEW
Principal activities
Thorn is a diversified financial services group providing the leasing of household products to consumers, and commercial asset
finance to small and medium size enterprises. There were no other significant changes in the nature of the activities of the
consolidated entity during the year.

Financial performance
A$m Segment revenue Segment EBIT to NPAT
2020 2019 2020 2019
Consumer Leasing 162.4 178.7 (8.0) (2.1)
Business Finance 41.9 43.2 (19.1) 16.1
Corporate - - (8.3) (11.9)
Significant items – class action and strategic review - - (26.7) (11.9)
Sub-total 204.3 221.9(62.1) (9.8)
Net interest expense (16.3) (15.4)
Loss before tax (78.3) (25.2)
Tax expense (2.7) 7.1
Net loss after tax from continuing operations (81.1) (18.1)
Profit from discontinued businesses after tax - 3.2
Net loss after tax (81.1) (14.9)
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 3
Revenue from continuing operations fell 7.9% to $204.3m (2019: $221.9m), and the net profit after tax (‘NPAT’) fell from a
$(14.9)m loss to a $(81.1)m loss.
The profit and loss statement includes significant items which are displayed below separate to the normal operating results of
the Group. This year $26.7m of costs were incurred for the class action and the strategic review and are presented as significant
items, the last year comparative contains asset impairments and class action legal costs of a combined $11.9m. Within the
reported operating EBIT for Consumer Leasing and Business Finance are additional provision charges of $13.5m and $22.1m
respectively for the expected credit loss as a result of COVID-19 on the receivables books in those divisions.
Consumer Leasing
The Company’s consumer leasing division, Radio Rentals, recorded lower sales units and revenues this year with 74,503 units
being installed in the year which was 10.6% lower than last year’s 83,299. Revenue for the 2020 financial year reduced by
$16.3m to $162.4m (2019: $178.7m). Revenue is a combination of sales revenue from installations under new contracts and
the interest and fee income from past written contracts. Interest income reduced as the receivables book (before provisioning),
which generates the interest income, fell 10.5% to $146.0m (2019: $163.1m).
In the face of reduced revenue, the costs of the division were cut. Costs, other than impairment expenses, reduced by $18.7m,
by a combination of reductions in cost of goods sold, staff costs and other expenses.
The introduction of AASB 16 generated a right of use asset for the leased property and vehicles along with a lease liability but
the right of use asset was written off upon introduction through reserves. If AASB 16 had not been adopted rent expense would
have been $7.3m higher. The $7.3m was replaced by $0.7m of financing expense. The difference, $6.7m, would usually have
been presented as depreciation, however due to the impairment depreciation was zero. Additionally new leases capitalised
during the year were immediately impaired through the impairment line at an expense of $1.9m. The net positive impact to
profit before tax was $4.8m.
The credit loss impairment expense on the lease receivables book rose $8.4m to $38.8m (2019: $30.4m) including the
additional provision of $13.5m taken up for the expected impact of COVID-19 and the closure of the store network. Arrears
over 30 days outstanding at the year-end finished at 15.7% compared to 13.8% at 31 March 2019.
EBIT was a $8.0m loss (2019: $2.1m loss).
Business Finance
Originations of equipment leases and chattel mortgages were $152.0m for the year which was broadly in line with the prior
year total of $150.5m. The portfolio interest rate remained stable across the year. The receivables book reduced from $345.2m
to $323.4m before the provision for expected credit losses.
Revenue decreased 3.1% to $41.9m (2019: $43.2m). Arrears have trended up from 4.4% at the end of March 2019 to 5.1% at
this year-end. Impairment expenses for credit loss rose $32.5m to $49.9m (2019: $17.4m) and included the additional provision
of $22.1m for the expected credit loss impact of COVID-19. At the time of writing, approximately 31% of customers by value
with a principal amount owing of circa $100m have applied for payment holiday relief citing COVID-19. Costs other than
impairment increased by $1.3m during the year with additional costs being recorded for collection staff and the legal recoveries
process.
EBIT was a $19.1m loss (2019: $16.1m profit).
Corporate
Corporate expenses were cut by 30.3% to $8.3m (2019: $11.9m) as management have continued to focus on the aligning the
cost structure with the current revenue base. The majority of the reduction was achieved through reduced headcount.
Insurance costs for directors and officers insurance also increased.
Significant items
The $26.0m of costs incurred in settling the Radio Rentals class action including the associated legal fees are recorded as a
significant item along with $0.7m of costs for the strategic review.
DIRECTORS’ REPORT
For the year ended 31 March 2020
4 I Thorn Group
Net interest expense
Net interest expense increased by 5.5% from $15.4m to $16.3m. These costs now include $0.7m of financing charges on
operating lease liabilities due to the adoption of AASB 16. Borrowings in the warehouse rose marginally to $293.5m (2019:
$288.6m) which led to marginally higher funding costs in the Business Finance division. The corporate facility balance
conversely was slightly reduced during the year down to $12.0m (2019: $15.0m).
Tax expense
The Company recorded a large loss before tax but has not taken up the full tax benefit attributable as directors were not
certain that there would be sufficient taxable profits in future years to justify the recording of such a large asset on the balance
sheet.
Financial position
The balance sheet is presented below and has two versions. The first version excludes the securitised warehouse trust
borrowings for Business Finance along with those associated receivables (which are non-recourse funding for the warehouse)
leaving only the corporate bank debt facility, and the second is as per the statutory accounts format. This additional column
format is presented so the reader can view the gearing and financial position of Thorn without the securitised warehouse trust
and its cash, receivables, and borrowings.
Summarised financial position 31 March 2020 31 March 2019
$m excl. Trust incl. Trust excl. Trust incl. Trust
Cash at bank 28.7 49.6 7.9 30.6
Receivables 91.7 389.8 167.5 457.4
Investment in unrated notes 25.5 - 24.0 -
Inventories and other assets 13.9 13.9 24.8 24.8
Intangible assets - - - -
Total Assets 159.8 453.4 224.2 512.8
Borrowings 12.0 305.5 15.0 303.6
Other liabilities 42.1 42.1 40.9 40.9
Total Liabilities 54.1 347.6 55.9 344.5
Total Equity 105.8 105.8 168.3 168.3
Gearing (net debt/equity) (i) -15.8% 261.7% 4.2% 171.9%
EPS (33.7) (9.3)
(i) Gearing is calculated as closing net debt (i.e. debt less free cash) divided by closing equity

Cash at bank
The cash at bank amount includes the free cash available to the Group for its usual working capital balance plus the tied cash
which is both customer receipts held in the securitised warehouse special purpose vehicle and cash reserves required to
support the public rating of the notes. At the year end, free cash was $28.7m and tied cash $20.9m (2019: $7.9m and $22.7m).

Receivables
The balance consists of consumer leasing receivables and business finance receivables. All are stated as their gross amount less
unearned interest, less a provision for any expected credit loss. Those provisions have been increased this year as a result of
the significant increase in credit risk and losses anticipated to arise from the COVID-19 pandemic.
The Consumer Leasing receivables gross balance reduced by $17.1m to $146.0m (2019: $163.1m) due to lower originations and
the total book reducing accordingly. The provision increased by $9.6m to $(36.3m) (2019: $(26.7m)). This included a $13.5m
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 5
provision for the expected impact of COVID-19 and store closures. The net receivables balance reduced by $26.7m to $109.7m
(2019: $136.4m).
The Business Finance receivables gross balance reduced by $22.5m to $325.5m (2019: $348.0m) due to lower originations and
higher write offs. The provision increased by $18.0m to $(45.3m) (2019: $(27.1m)). This included a $12.1m provision for the
expected impact of COVID-19. The net receivables balance reduced by $40.8m to $280.2m (2019: $321.0m).
In the table above, the columns which exclude the warehouse trust eliminate the Business Finance receivables held in the
warehouse leaving the Consumer Leasing receivables, the remaining Business Finance receivables which are not financed
through the warehouse along with the provisions for impairment.

Investment in unrated notes
This balance represents the equity notes held by the Group in the securitised warehouse representing 8% of the notes by value.

Borrowings
The corporate facility was paid down by $3.0m from $15.0m to $12.0m during the year. The securitised warehouse borrowings
were paid down by $10.1m to $293.5m (2019: $303.6m) during the year.

Other liabilities
Other liabilities increased by $1.1m which was driven by the introduction of $11.7m of lease liabilities under AASB 16, plus
$2.0m due to the interest rate derivative used to hedge the Business Finance book going up from $3.3m to $6.3m. There were
countervailing reductions due to the finalisation of the regulatory remediation program and the settlement of related
provisions and liabilities.
Funding
The Group has the following debt facility limits:
$m 2020 2019
Secured Corporate Loan Facilities A and B

17.0 30.0
Securitised Warehouse Facility 368.0 368.0

Corporate facilities
The corporate debt facility is in two parts; the ‘A’ facility which is a general corporate facility fully drawn to its $12.0m limit, and
the ‘B’ facility which is a $5.0m limit of a combined undrawn overdraft and drawn bank guarantees to landlords and suppliers.
The ‘B’ facility utilization varies with the level of overall guarantees given and was drawn to $3.0m at year end to fund bank
guarantees and the remaining available overdraft facility was undrawn. The drawn balance in facility ‘A’ of $12.0m is presented
as a current liability in the statement of financial position as the facility matures on 30 November 2020 and the intention is to
repay it at that time. The corporate facilities are secured by a fixed and floating charge over the assets of the consolidated
entity.
During the year the Group entered into a revised arrangement with its lender on its corporate facility which waived the Group’s
obligation to comply with any financial covenants until 14 April 2020. As part of this arrangement, the Group’s $25.0m facility
‘A’ limit was reduced to $15.0m at 30 September 2019 and subsequently reduced to $12.0m in October 2019 following the
Group’s rights issue. The Group is currently operating without a waiver but is in negotiations with its lender over a further
waiver which envisages repaying the $12m corporate facility progressively through to 30 November 2020 and abiding under a
new covenant not to pay a dividend while the corporate facilities remain unrepaid.
Warehouse facility
Thorn Business Finance is financed by a securitised warehouse structure with senior notes (70%) held by a major Australian
bank, mezzanine notes (22%) held by a major Australian financial services company, and equity class F notes (8%) held by
Thorn.
The warehouse facility was reviewed by the note holders in the normal course of business during the year with the availability
period being extended to 10 August 2020 and the final maturity date to 10 August 2026.
The warehouse facility is secured by rentals and payments receivable from the underlying lease receivable contracts and is non-
recourse to the Group by which it is meant that Thorn’s liability is limited to its class F notes unless it is liable in damages for
breach of the documents or it is required to buy back a ineligible receivable (defined as one that breached Thorn’s initial sale
representations and not merely that it goes into arrears or defaults).
DIRECTORS’ REPORT
For the year ended 31 March 2020
6 I Thorn Group
The amounts due and payable on the warehouse loan facility in the next 12 months are disclosed as current. At maturity no
further leases are able to be sold down into the facility and the portfolio will amortise off for as long as the underlying leases
are payable. In order for the Group to utilise the available headroom in the Warehouse facility, the Group, as the holder of the
residual interest, needs to fund a minimum percentage of the value of receivables sold down into the warehouse facility.
On 5 May 2020, when calculating the 30 April 2020 warehouse monthly financial results, the warehouse facility was
determined to have a breach in one of its warehouse parameters which requires no more than 6% of the balances to be in
arrears by more than 30 days. That arrears number was 10.5% and was directly due to the increasing presence of COVID-19
affected customers many of whom had requested a payment holiday and stopped repayments under their leases.
When the COVID-19 pandemic arose and Thorn began receiving payment holiday requests, Thorn held discussions with the
senior and mezzanine noteholders around the granting of concessions such that Thorn could vary the customer contracts to
include a payment holiday. Those discussions had not progressed to a resolution by 5 May 2020 and so the inevitable arrears
increase triggered the breach.
A breach of this parameter is an amortisation event which, if not waived or remedied, puts the warehouse into run off under its
amortisation rules. While such an event subsists, Thorn is unable to sell its originations into the warehouse and the
distributions it was expecting from the warehouse via the waterfall distribution mechanism will decline depending upon the
extent of the cash flow reduction.
Discussions are continuing with the senior and mezzanine note holders. If this situation remains unresolved then Thorn will
endeavour to seek new sources of finance.
DIVIDENDS PAID OR RECOMMENDED
There were no dividends declared or paid during the financial year:
Cents per share Amount $'000 Franking Date of payment
2020

Final 2019 - - n/a n/a
Interim 2020 - - n/a n/a
Total amount

-
2019
Final 2018 - - n/a n/a
Interim 2019 - - n/a n/a
Total amount

-
Directors have resolved that no final dividend be declared.
REGULATORY MATTERS
Thorn finalised its Enforceable Undertaking, originally entered into with ASIC on 23 January 2018, during the year.
The Group is not subject to any significant environmental regulation. Thorn’s asset valuations, useful lives, fair values, costs of
or demand for its products, and credit losses from its receivable books are unlikely to be materially affected by climate change.
Thorn does seek to source products for its consumer division customers which are environmentally friendly and efficient and
does seek to finance solar installations.
CONTINGENT LIABILITY
The class action which was previously classified as a contingent liability was settled during the year for an amount of $25.0m
paid by Thorn. This settlement was approved by the Federal Court on 20 December 2019.
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 7
SUBSEQUENT EVENTS
The COVID-19 pandemic has had two significant impacts upon Thorn subsequent to the year end.
Securitised warehouse funding
First, as explained above in the Funding section, the pandemic has affected the financial position of many of Thorn’s customers
and in particular reduced the cash repayments being received from Thorn Business Finance division customers. That reduced
cash flow has had the consequent impact upon the warehouse financing structure described and has caused an amortisation
event to subsist which precludes Thorn selling any further receivables into the warehouse and changes the waterfall cash flows
to repay the more senior notes first.
Discussions are continuing with the senior and mezzanine note holders. If this situation remains unresolved then Thorn will
endeavour to seek new sources of finance.
Radio Rentals store closures and transition to fully online
The health and safety concerns for Radio Rentals customers and staff during the developing COVID-19 pandemic prompted
Thorn to temporarily close the Radio Rentals stores on 2 April 2020.
Thorn had at the time been developing a plan to address the division’s profitability and the substantial move by customers to
the online platform where 70% of applications were being received online. On 23 April 2020, Thorn announced the decision to
permanently close the Radio Rentals store network, collect the legacy receivables book, and develop its core Radio Rentals
business using a purely online platform.
This decision entails approximately 300 redundancies at an estimated cost of $5m which is not provided for in these financial
statements as it is a non-adjusting accounting event, the termination of all Radio Rentals store leases with a settlement sum to
be paid to the lessors and make good expenses where appropriate, the realisation of the existing inventory position, incurring
of expenses to continue to service and collect on the receivables book, and developing the digital business model. These are
substantial changes to the division’s business model which will have a significant impact on the company and its financial
statements going forward.
FINANCING AND GOING CONCERN BASIS FOR THE FINANCIAL REPORT
The directors have determined that the going concern basis is appropriate in preparing the financial report.
The Group incurred a net loss after tax of $81.1m (2019: $14.9m loss) for the year ended 31 March 2020 and net cash used in
operating activities during the same period amounted to a $9.2m (2018: $12.9m) out flow. It should also be noted that the net
operating cash outflow includes outflows of $61.2m for inventory of household goods assets used to seed Radio Rentals
consumer leases and $155.8m for originations in Business Finance.
The Group provides financing to both consumers and small and medium size enterprises across a range of industries, many of
which have been impacted by COVID-19. Approximately 30% of the Group’s SME customers by value have requested payment
holidays. Thorn continues to be in discussion with the senior and mezzanine note holders in the securitised warehouse
regarding relief options.
Subsequent to the year end, the securitised warehouse fell into breach of one of its warehouse parameters as a result of
customers affected by COVID-19 progressively going into arrears. That breach while it subsists puts the warehouse into
amortisation. Discussions are continuing with the note holders to waive or remedy that breach.
Thorn’s Radio Rentals division has been affected by COVID-19 with the Group announcing the temporary closure of its store
network for safety reasons, and then a permanent closure of the Radio Rentals stores and warehouses and moving the business
completely online. These closures are expected to result in redundancies for approximately 300 casual and full time staff across
the Group.
The core of the Radio Rentals business will continue to operate and will be leveraged to develop a new digital business model.
Thorn has introduced new credit policies and collection processes as well as cutting costs across all divisions to seek to ensure
the business model remains sustainable into the future.
The cost reductions underway, the tightening of Business Finance originations and the collecting on the Radio Rentals
receivables book will all be cash positive for the Group. The continuing viability of the Group as a going concern beyond that
point is dependent upon the Group returning to profitability, resolving present financing difficulties so as to be able to revitalise
Business Finance, and successfully progressing the Radio Rentals digital strategy.
DIRECTORS’ REPORT
For the year ended 31 March 2020
8 I Thorn Group
Considering all the above, and acknowledging that corporate actions and discussions with current or proposed lenders always
contain some risk and uncertainty, the directors have reviewed the Group’s cash flow forecast and, in the directors’ opinion,
there are reasonable grounds to believe that the collecting on the Radio Rentals book will provide sufficient incoming cash flow
to ensure the Group will be able to meet its obligations and accordingly continue as a going concern.
While the directors are of the opinion expressed above, the resolution of funding for the Business Finance division and the
launch of Radio Rentals online business are not guaranteed and accordingly a material uncertainty exists that may cast
significant doubt as to whether Thorn will be able to continue as a going concern and therefore whether Thorn will be able to
realise its assets and discharge its liabilities in the normal course of business and for the amounts recorded in this report.
OUTLOOK
Given the significant effect that the ongoing COVID-19 pandemic is having, there are insufficient grounds to be able to provide
a detailed and reliable outlook statement and profit guidance at the present time.
Thorn will progress its announced actions on Radio Rentals, will invest in and launch the new digital Radio Rentals business, and
seek to resolve the funding issues in the Business Finance division.
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 9
DIRECTORS' INFORMATION

Warren McLeland
Non-Executive
Appointed 30 August 2019
Appointed Board Chairman 23 October 2019
Appointed Chair of Risk and Compliance Committee 4
December 2019
Qualifications
Bachelor of Science
MBA
Experience
Warren has over 40 years’ experience in financial services, in
wholesale and retail sectors at top business management and
CEO levels. Warren’s experience has been gained in
organisations such as Bain and Co and Chase Manhattan (now
JP Morgan Chase). Warren is the Non-Executive Chairman of
ASX listed Resimac Group Limited and was formerly the CEO.
Warren is a former non-executive director of UIL Limited.
Other current ASX directorships
Resimac Group Ltd
Former ASX directorships
Interests in shares and options
Nil

Kent Bird
Independent, Non-Executive
Appointed 30 August 2019
Appointed Deputy Chair of the Board 11 October 2019 and
the Chair of Thorn’s Remuneration and Nomination
Committee 30 August 2019
Qualifications
Bachelor of Business
Graduate Diploma in Applied Finance
Experience
Kent is a banking and finance professional with 25 years’
experience in commercial and investment banking.
Kent was with Credit Agricole CIB Australia Limited for 12
years and was the Managing Director – Head of Loan
Syndications Australia and Head of DCM Origination Australia
for the last three years, ending in December 2018. Prior to
this, Kent worked at various financial institutions such as
Suncorp Limited, Heritage Bank Limited and the Queensland
Office of Financial Supervision (now the Australian Prudential
Regulation Authority).
Other current ASX directorships
None
Former ASX directorships
None
Interests in shares and options
133,186 ordinary shares

Paul Oneile
Independent, Non-Executive
Appointed 14 October 2019
Appointed Chair of Audit Committee 4 December 2019
Qualifications
Bachelor of Economics

Experience
Paul is the current Chair of ASX listed company, A2B Australia
Limited (formerly Cabcharge Australia Limited).
Previously Paul was the non-executive Chairman of Intecq
Limited (formerly eBet Limited), from 2012 until its
acquisition by Tabcorp Holdings Limited in December 2016.
From 2003 to 2008, Paul was CEO of Aristocrat Leisure
Limited where he oversaw significant business and cultural
change, refocused R&D spending, streamlined the supply
chain operation, and successfully oversaw growth of the
company’s international operations.
Other current ASX directorships
A2B Australia Ltd A2B Limited (formerly Cabcharge Australia
Limited)
Former ASX directorships
Aristocrat Leisure Ltd
Intecq Limited (formerly eBet Limited)
Village Roadshow Limited
Interests in shares and options
Nil


DIRECTORS’ REPORT
For the year ended 31 March 2020
10 I Thorn Group
Allan Sullivan
Non-Executive
Appointed 30 August 2019
Qualifications
Bachelor of Science, Bachelor of Engineering, Doctor of
Engineering
Experience
Allan has had a professional career spanning over 30 years
involving senior management roles in Switzerland, Holland,
Korea, Hong Kong and Australia. Allan has a Bachelor of
Science, a Bachelor of Engineering and a Doctor of
Engineering from the University of Sydney.
Allan was the Chief Executive Officer and Director of the
listed ASX-ERG Group of Companies based in Perth (now Vix
Technology) from 2004 to 2007. Since 2007, Allan has acted
as a consultant to the VIX Verify Group and the Allectus
Capital Group in relation to their technology businesses.
More recently, Allan has acted as Executive Chairman of the
VIX Verify Group, managing the successful sale of VIX Verify
Global Identification business to the UK listed GB Group.
Other current ASX directorships
None
Former ASX directorships
Vix Technology Ltd

Interests in shares and options
205,999 ordinary shares
David Foster
Independent, Non-Executive
Appointed 1 December 2014, retired on 23 October 2019
Appointed Board Chairman 1 February 2018, Chairman until
his retirement on 23 October 2019
Qualifications
Bachelor of Applied Science
MBA, GAICD, SFFIN
Experience
David is an experienced Independent Non-Executive Director
across a range of industries. He has had an extensive career in
Financial Services spanning over 25 years.
His most recent executive role until December 2013 was CEO
of Suncorp Bank, a role he commenced in September 2008.
Prior to his role as CEO of Suncorp Bank, David led Suncorp’s
strategy function which included numerous merger and
acquisition activities including one of Australia’s largest
Financial Services transactions – Promina Limited.
Other current and former ASX directorships
G8 Education Limited
MotorCycle Holdings Limited
Genworth Mortgage Insurance Australia Limited
Kina Securities Limited
Interests in shares and options
Nil
Belinda Gibson
Independent, Non-Executive
Appointed 1 July 2016, retired 4 December 2019
Chairman of the Risk & Compliance Committee
Appointed 1 February 2018, Chairman until her retirement on
4 December 2019
Qualifications
Bachelor of Economics, LLB (Hons) (Sydney) and LLM (Hons)
(Cambridge), FAICD, FGIA
Experience
Belinda was a Commissioner and then Deputy Chairman of
the Australian Securities and Investments Commission (ASIC)
from 2007 until May 2013. From 1987 until joining ASIC she
was a corporate law partner at the law firm Mallesons
Stephen Jaques, specialising in transactional advice and also
corporate governance issues.
Other current and former ASX directorships
Getswift Limited
Interests in shares and options
Nil


Andrew Stevens
Independent, Non-Executive
Appointed 1 June 2015, retired 4 December 2019,
Chairman of the Audit Committee
Appointed 1 February 2018, Chairman until his retirement on
4 December 2019
Qualifications
Master of Commerce
FCA
Experience
Andrew began his career at Price Waterhouse (now PwC) and
was a Partner of that firm for 12 years. He also performed a
range of senior management and global leadership roles at
IBM Corporation, most recently serving as the Managing
Director of IBM Australia and New Zealand from 2011-2014.
Other current and former ASX directorships
Stockland Corporation Limited
MYOB Group Limited
Interests in shares and options
Nil

DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 11

Stephen Kulmar
Independent, Non-Executive
Appointed 15 April 2014, retired 30 August 2019
Chairman of the Remuneration & Nomination Committee
Appointed 15 April 2014, Chairman until his retirement on 30
August 2019
Experience
Stephen is the former Managing Director and Chairman of
IdeaWorks and is currently the Managing Director of Retail
Oasis, retail marketing and business consultancy.
Stephen has over 40 years’ experience in advertising and has
extensive experience in retail strategy, brand strategy,
channel to market strategy, digital and social strategy,
business re-engineering and new retail business
development.
Other current and former ASX directorships
Accent Group Ltd
Interests in shares and options
136,000 ordinary shares
Joycelyn Morton
Independent, Non-Executive
Appointed 1 October 2011, resigned 31 May 2018
Board Chairman 26 August 2014 until 1 February 2018
Qualifications
Bachelor of Economics FCA, FCPA, FIPA, FGIA, FAICD
Experience
Joycelyn has more than 35 years’ experience in finance and
taxation having begun her career with Coopers & Lybrand
(now PwC), followed by senior management roles with
Woolworths Limited and global leadership roles in Australia
and internationally within the Shell Group of companies.
Joycelyn was National president of both CPA Australia and
Professions Australia, she has served on many committees
and councils in the private, government and not-for-profit
sectors.
Other current and former directorships
Argo Investments Limited, Argo Global Listed Infrastructure
Limited, Beach Energy Limited
InvoCare Limited, Crane Group Limited
Count Financial Limited, Noni B Limited
Interests in shares and options
95,119 ordinary shares
Tim Luce
Managing Director
Appointed 15 February 2018, Managing Director and CEO
until his retirement on 12 February 2020
Qualifications
Bachelor of Commerce
Experience
Tim has extensive executive experience working with retail
brands in Australia and Asia and joins Thorn Group after six
years with Courts Asia Ltd, an SGX listed retailer with over 90
stores selling household, technology, furniture, services and
consumer finance products, headquartered in Singapore
where he was Chief Operating Officer with P&L responsibility
for Singapore, Malaysia and Indonesia. Prior to Courts, Tim
held General Manager roles for Lovisa and Goldmark
Jewellers.
Interests in shares and options
738,117 ordinary shares
598,803 performance rights

Company Secretary
Alexandra Rose (BLaws, MBA, FAID, FGIA, FCIS) is the Group’s
General Counsel and General Manager of Risk & Compliance
having joined the company on 30 October 2019. Alexandra is
an experienced corporate lawyer with over 20 years of legal,
risk and regulatory expertise. She has held senior executive
roles at a number of leading Australian financial services
companies.

DIRECTORS’ REPORT
For the year ended 31 March 2020
12 I Thorn Group
Directors’ Meetings
The number of directors’ meetings (including meetings of committees of directors) and number of meetings attended by each
of the directors of the Company during the financial year are detailed below.
Director Board Meetings Audit Committee Meetings
Risk & Compliance Committee
Meetings
Remuneration & Nomination
Committee Meetings
A B A B A B A B
Warren McLeland 10 11 1 1 0 1 1 1
Kent Bird 11 11 1 1 1 1 1 1
Paul Oneile 7 7 1 1 0 0 1 1
Allan Sullivan 11 11 1 1 1 1 1 1
David Foster 14 14 2 2 4 4 2 2
Belinda Gibson 15 17 3 3 4 4 3 3
Andrew Stevens 16 17 3 3 4 4 3 3
Stephen Kulmar 9 11 2 2 3 3 2 2
Tim Luce 19 19 3 3 4 4 3 3
A – Number of meetings attended
B – Number of meetings held during the time the director held office during the year


INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
Indemnification
The Company has agreed to indemnify the current, former and subsequent directors and officers of the Company, against all
liabilities to another person (other than the Company or a related body corporate) that may arise from their position as
directors or officers of the Company and its controlled entities, except where the liability arises out of conduct involving a lack
of good faith. The agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and
expenses.
Insurance premiums
During the financial year the Company has paid insurance premiums of $931,000 in respect of directors’ and officers’ liability
and legal expenses insurance contracts, for current and former directors and officers, including senior executives of the
Company and directors, senior executives and secretaries of its controlled entities. The insurance premiums relate to costs and
expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and whatever their outcome, and
other liabilities that may arise from their position, with the exception of conduct involving misconduct. The insurance policies
outlined above do not contain details of the premiums paid in respect of individual officers of the Company.

DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 13

REMUNERATION REPORT
The Board of Thorn Group Limited presents the remuneration report which outlines key aspects of the remuneration policy and
framework and the remuneration awarded this year.
The information provided in this report has been prepared based on the requirements of the Corporations Act 2001 and the
applicable accounting standards and has been audited by PwC.
The report is structured as follows:
1. Remuneration governance
2. Non-Executive Directors and Key Management Personnel
3. Non-Executive Director remuneration
4. Key Management Personnel remuneration
5. Alignment between remuneration and performance
6. Service contracts for KMP
7. Other statutory disclosures
1. REMUNERATION GOVERNANCE
The Company aims to deliver sustainable and superior returns to shareholders. The remuneration framework is designed to
ensure rewards are appropriate for the results achieved and are aligned to the Company’s strategic goals and shareholder
wealth creation.
The Board provides guidance and oversight to the remuneration strategy and has established a Remuneration & Nomination
Committee to ensure the remuneration strategy attracts and retains quality directors and executives, fairly and responsibly
rewards them, is equitable and aligned to shareholders’ interests, and complies with the law and high standards of governance.
The Committee is made up of independent non-executive directors and its charter is available on the Company website. The
Committee makes recommendations to the Board for its consideration and approval. The Committee Chairman will be
available at the Annual General Meeting to answer any questions from shareholders on this report. At the 2019 AGM, the
Remuneration Report received a vote of approval of 12% of the votes received and hence was rejected by shareholders.
The Committee can draw on independent experts where appropriate to provide advice on remuneration levels, trends and
structures. Where this occurs the consultants are instructed by and report directly to the Chairman of the Committee and are
thereby free of any undue influence by any KMP to whom their recommendations may relate.
2. NON-EXECUTIVE DIRECTORS AND KEY MANAGEMENT PERSONNEL - AUDITED
For the year ended 31 March 2020, the NEDs and KMP were:
Non-Executive Directors Position Director/Committee Chair
Term or Date
Warren McLeland Director
Board Chairman
Chairman of Risk & Compliance Committee
Appointed 30 August 2019
Appointed 23 October 2019
Appointed 4 December 2019
Allan Sullivan Director Appointed 30 August 2019
Kent Bird Director
Chairman of the Remuneration & Nomination Committee
Appointed 30 August 2019
Appointed 30 August 2019
Paul Oneile Director
Chairman of Audit Committee
Appointed 14 October 2019
Appointed 4 December 2019
David Foster Director and Board Chairman Until 23 October 2019
Stephen Kulmar Director and Chairman of the Remuneration & Nomination
Committee
Until 30 August 2019
Andrew Stevens Director and Chairman of Audit Committee Until 4 December 2019
Belinda Gibson Director and Chairman of Risk & Compliance Committee Until 4 December 2019
DIRECTORS’ REPORT
For the year ended 31 March 2020
14 I Thorn Group
Executive KMP Position Term or Date
Pete Lirantzis CEO Appointed 10 February 2020
Alexandra Rose General Counsel, General Manager Risk & Compliance and
Company Secretary
Appointed 30 October 2019
Peter Forsberg Chief Financial Officer Full Year
Tim Luce CEO and Managing Director Until 12 February 2020
Wendy Yip Chief Risk Officer Until 22 November 2019
David Lines General Counsel and Company Secretary Until 16 August 2019
NB. Peter Forsberg resigned as Company Secretary on 7 May 2020.
3. NON-EXECUTIVE DIRECTOR REMUNERATION - AUDITED
Non-executive directors’ fees are determined within an aggregate directors’ fee pool as approved by shareholders from time to
time. Independent remuneration consultants are employed periodically to provide advice and, where an increase is
recommended, this is put to shareholders at the subsequent AGM. The current maximum aggregate fee pool is $650,000
inclusive of superannuation per annum and was last voted upon by shareholders at the 2013 AGM. The Board does not intend
to seek an increase to the fee pool at the 2020 AGM.
The new directors appointed during the year reduced their fees. The base annual fee for the Chairman was $187,223 per
annum including superannuation and is now $82,125. Base fees for other non-executive directors were $93,611 per annum
including superannuation but are now $82,125. The Chairs of each of the committees receive an additional annual fee of
$10,950 inclusive of superannuation.
Non-executive directors do not receive performance-related remuneration. Non-executive directors are not entitled to any
additional remuneration upon retirement. Out-of-pocket expenses are reimbursed to directors upon the production of proper
documentation.
Name Year Salary and fees Superannuation Total
Warren McLeland 2020 45,115 4,286 49,401
2019 - - -
Kent Bird 2020 47,731 4,534 52,265
2019 - - -
Paul Oneile 2020 36,173 3,436 39,609
2019 - - -
Allan Sullivan 2020 42,115 4,001 46,116
2019 - - -
David Foster 2020 100,615 9,558 110,173
2019 170,980 16,243 187,223
Stephen Kulmar 2020 42,236 4,187 46,423
2019 95,490 9,072 104,562
Andrew Stevens 2020 67,210 6,385 73,595
2019 95,490 9,072 104,562
Belinda Gibson 2020 67,210 6,385 73,595
2019 95,490 9,072 104,562
Joycelyn Morton 2020 - - -
2019 16,112 1,531 17,643
Total Non-Executive Director Remuneration 2020 448,405 42,772 491,177
2019 473,562 44,990 518,552
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 15

4. EXECUTIVE KMP REMUNERATION - AUDITED
The Company’s approach to remuneration is framed by the strategy and operational demands of the business, the desire for
superior sustained shareholder returns, the complex and onerous regulatory environment and high standards of governance.
The remuneration structure has been designed to balance both shareholder and executive interests. It consists of a mix of fixed
and ‘at-risk’ pay where the at-risk element seeks to balance both short and long term performance.
The diagram below illustrates the link between the business’ objective and executive KMP remuneration.
Business objective
The Company is committed to providing a ‘fair go’ for consumers and SMEs in a responsible manner while delivering shareholders sustainable and
increasing long term value.
↓
Remuneration strategy objectives
1. Align executive remuneration to Company performance and
results delivered to shareholders through the short and long term
incentive plans being ‘at-risk’ based on business profit after tax
performance and returns to shareholders.
2. Attract, motivate and retain executive talent in a competitive
market through a competitive rewards program which attracts
quality executives and incorporates a significant at-risk incentive
component.
↓
Fixed At-risk
Fixed remuneration Short term incentive Long term incentive
Base salary and benefits plus statutory
superannuation contributions
Annual cash payment with deferral mechanism Performance rights granted annually at the
Board’s discretion
Rewards experience skills and capabilities Rewards performance over a 12 month period Rewards achievement of the Company’s
shareholder return targets over a three year
period
Fixed payment reviewed annually and any
increases applied from 1 April
At-risk wholly dependent upon achieving agreed
performance
(only paid if targets achieved)
At-risk wholly dependent upon achieving agreed
performance
Set with reference to comparable companies (in
terms of industry and size), the scope and
nature of the role, and the executive’s
qualifications, skills, and experience
Payment is determined by performance against
net profit after tax target and individual KPIs
Vesting is determined by performance against
targets which align to the Company’s long term
shareholder return objectives
Future remuneration intentions
The above described remuneration framework for both short and long term incentives is presently under review.
DIRECTORS’ REPORT
For the year ended 31 March 2020
16 I Thorn Group
Summary of executive KMP remuneration outcomes on a statutory basis – audited
Name Year
Salary Termination STI
Other
remuneration
Superannuation
Long
Service
Leave
LTI
Total
Executive KMP
Pete Lirantzis 2020 111,588 - - - 6,717 - - 118,305
2019 - - - - - - - -
Peter Forsberg 2020 424,958 - - 215,000 20,885 - 136,657 797,500
2019 424,967 - - 110,000 20,411 - 180,358 735,736
Alexandra Rose 2020 130,731 - - - 10,435 - - 141,166
2019 - - - - - - - -
Former KMP’s
Tim Luce 2020 680,973 - - - 20,885 - (332,184) 369,674
2019 704,580 - 181,250 - 20,411 - 736,226 1,642,467
Wendy Yip 2020 249,727 - - 46,376 15,634 - (53,157) 258,580
2019 329,580 - - 60,000 20,411 - 115,488 525,479
David Lines 2020 149,239 - - 2,612 10,384 - (58,737) 103,498
2019 329,580 - - 60,000 20,411 - 102,249 512,240
Total KMP 2020 1,747,216 - - 263,988 84,940 - (307,421) 1,788,723
Remuneration 2019 1,788,707 - 181,250 230,000 81,644 - 1,134,321 3,415,922

a) Other remuneration represents retention and capital raising incentive payments
b) The LTI column represents the accounting charge recognised in the Company’s profit and loss account in respect of the long term incentive plan,
and also include retention payments settled in equity. The charge reflects the fair value of the performance rights calculated at the date of grant
using a Monte Carlo simulation model and allocated to each reporting period over the period from grant date to the expected vesting date. The
value disclosed is the portion of the fair value of the performance rights allocated to this reporting period. Where grants lapse due to the failure
or anticipated failure to achieve non-market condition hurdles then the expense previously recognised can be reversed and result in a negative
entry in this column.

Retention payments
The KMP, with the exception of Mr Luce, received no pay rise or short term incentive in 2019 or 2020. The Board in place at the
beginning of the financial year recognised that retaining the services of several of its key executives was essential to the
ongoing success of the Group and accordingly retention payment arrangements were paid in the year to 31 March 2020 to Mr
Forsberg, Ms Yip and Mr Lines as set out in the table above. The new Board has put no such arrangements in place.
Remuneration mix
The table below represents the target remuneration mix for group executives in the current year:
At risk
Fixed remuneration Short term incentive Long term incentive
KMP 50% 25% 25%
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 17

Fixed remuneration
Fixed remuneration consists of a base salary and benefits plus statutory superannuation contributions. The fixed remuneration
is set with reference to the market, the scope and nature of the role, and the executive’s qualifications, skills, performance and
experience. In certain cases, the Board may determine that it is appropriate to stretch fixed annual compensation in order to
attract critical talent where necessary.
Fixed remuneration is reviewed annually and any increase applied from 1 April. The Board may also approve adjustments
during the year as recommended by the CEO such as those arising from promotion or the undertaking of additional duties.
Short term incentive
The short term incentive (“STI”) is an annual cash payment subject to achieving performance criteria based both on financial
and non-financial key performance indicators. There is a target level of payment with an additional stretch component
available for out-performance. The Board has discretion in all matters. The below described remuneration framework is
presently under review.
Features Description
Purpose To motivate executives to achieve the short term performance targets.
Opportunity Target (as % of Fixed) Maximum (as % of Fixed)
KMP 50% 100%

Performance Period 12 months
Gateway and
performance metrics
The STI is subject to a Net Profit After Tax ‘NPAT’ gateway below which no STI payments are made. The maximum STI
that can be earned is based on NPAT against budget as follows:
Company NPAT against budget STI that can be earned
<85% 0%
85% 42.5%
100% 50%
110% 100%
60% of the STI that can be earned (detailed in the table above) is eligible for payment as it is based upon the financial
performance against budgeted PAT with the remaining 40% dependent upon the individual’s performance against
their personal KPIs.
The personal KPIs are individual to the executive’s position and capacity to influence, pre-agreed with the Board, and
relate to strategically important initiatives and measures for customer satisfaction, systems, risk and staff
development.
Assessment, approval and
payment
At the end of the financial year, the Remuneration & Nomination Committee assesses actual financial performance
based on the Company’s audited financial statements, and each executive’s performance against their personal KPIs
to determine the value of each executive’s STI reward.
The Board has 100% discretion with the STI outcome including the exercising of judgement with regard to any matter,
both positive and negative, that may have occurred during the financial period and to adjust the levels of achievement
accordingly.
Once approved, the STI rewards are paid in the month following the release of the Company’s results to the ASX.
Deferral A deferral mechanism is in place whereby 30% of the awarded STI is deferred for one year and subject to forfeiture
under two conditions only, first should a material misstatement or omission in the financial statements become
apparent, or second the executive acts in a manner unbecoming of the office held.
The deferred portion is subject to an election by the KMP as to its method of payment. It can be paid in cash one year
later, subject to the restrictions stated, and will earn interest at a suitable deposit rate for that period, or it can be
converted into performance share rights at a VWAP for the 5 days prior to the payment date of the initial tranche and
receive an uplift by a dividend equivalent for any dividends declared during the deferral period. The performance
rights will then be converted to shares on the due date and awarded to the KMP.
DIRECTORS’ REPORT
For the year ended 31 March 2020
18 I Thorn Group
STI OUTCOMES FOR 2020 - AUDITED
The Company reported a loss after tax which did not meet the hurdle and accordingly no STI’s were awarded.
STI for 2019-20 Target $ Earned % Earned $ Forfeited % Forfeited $
Pete Lirantzis* - - - - -
Peter Forsberg 222,500 0% - 100% 222,500
Alexandra Rose* - - - - -
Tim Luce 362,500 0% - 100% 362,500
Wendy Yip 165,000 0% - 100% 165,000
David Lines 165,000 0% - 100% 165,000
Total 915,000 0% - 100% 915,000

Pete Lirantzis and Alexandra Rose commenced employment during the year and were not eligible to participate in the FY20 STI scheme.
Long Term Incentive (LTI)
The Long Term Incentive is an annual performance rights plan to which executive KMP are invited to participate at the Board’s
discretion. The below described remuneration framework is presently under review.
The Company currently has three active LTI plans running which share the same method but differ slightly in their hurdles and
vesting criteria detailed in the table below. All of the plans were granted in the form of performance rights directly linked to the
performance of the Company, the returns generated, and relative increases in shareholder wealth. This structure was used to
ensure appropriate alignment to shareholder value over a specified timeframe.
The following table sets out the key features of the plans with specific references to each of the 2017, 2018 and 2019 plans
where they differ.
Features Description
Instrument Performance rights being a right to receive a share subject to performance and vesting conditions.
Purpose To motivate executives to achieve the long term performance targets.
Opportunity 50% of fixed remuneration

The number of performance rights issued is determined by dividing the dollar opportunity by the prevailing
share price of the Company at the date of issue.
Dividends or share issues No dividends are paid or accrued on unvested awards.
Performance criteria The plans use a Relative Total Shareholder Return (“RTSR”) performance hurdle and an Earnings Per Share
(“EPS”) hurdle in equal measure. The company’s Relative Total Shareholder Return performance is measured
against a comparator group of ASX listed companies (available on the website at www.thorn.com.au). RTSR was
selected as an objective indicator of shareholder wealth criterion as it includes share price growth, dividends
and other capital adjustments.
Thorn Group Limited’s TSR Ranking July 2017, July
2018 and July 2019 Grants
Percentage of Performance Rights subject to TSR
condition that qualify for vesting
< 50th percentile 0%
50th percentile
50th to 75th percentile
50%
Assessed on a straight line basis
75th percentile or greater 100%

Thorn Group Limited’s EPS Hurdle July 2017, July
2018 and July 2019 Grants
Percentage of Performance Rights subject to EPS
condition that qualify for vesting
< 5% compound annual growth rate
5%
>5% to <10%
0%
50%
Assessed on straight line basis
= or > 10% CAGR 100%
Performance period
and vesting dates
 July 2017: 3 years (1 July 2017 to 30 June 2020). Vesting date is 1 September 2020.
 July 2018: 3 years (1 July 2018 to 30 June 2021). Vesting date is 1 September 2021.
 July 2019: 3 years (1 July 2019 to 30 June 2022). Vesting date is 1 September 2022.
http://www.thorn.com.au/
DIRECTORS’ REPORT
For the year ended 31 March 2020
Annual Report 2020 I 19

Features Description
Assessment, approval
and payment
At the end of each performance period, the Remuneration & Nomination Committee assesses the relevant
performance measures and determines the extent to which the awards should vest.
Payment is made by the issuing or transfer of shares.
Change of control If a change of control occurs prior to the vesting of an award, then the Board may determine in its absolute
discretion whether all or some of a participant’s unvested award vest, lapse, is forfeited, or continues.
Termination Unvested performance rights will lapse if performance conditions are not met. Performance rights will be
forfeited on cessation of employment unless the Board determines at its absolute discretion otherwise.
Claw back provisions There are no specific provisions providing the capacity to clawback a component of remuneration in the event of
a matter of significant concern.
Calculation of the value of performance rights in the remuneration tables
The value of performance rights issued to executives and included in the remuneration tables is a mathematical model
calculation designed to show an intrinsic value. This is necessary to show the benefit attributable to the KMP in the year of
issue but before that benefit is actually received by the KMP.
The number of performance rights to be issued is derived from the relevant percentage of the executive’s fixed remuneration
at the time of the grant divided by the share price at that time. This number of performance rights is then input into a Monte
Carlo simulation model by an independent expert and which works out the intrinsic value of the performance rights using the
expected volatility of the shares, the time period to testing date, and a number of other monetary factors as set out in the table
below.
The end result is an intrinsic value for each of the performance rights which is recorded in the books of the Company by
allocating the expense to...