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What are the performance measures and hurdles In response to shareholder concerns regarding the use of a single LTI performance measure and to more accurately capture the Groups overall financial performance the Group has introduced an additional performance measure based on growth in EPS to supplement the relative TSR performance measure. TSR Performance against a relative TSR hurdle determines vesting for 50 of the performance rights issued in this financial year. TSR was selected as it provides a comparison of relative shareholder returns that is relevant to most of the Groups investors. The relative TSR performance hurdle takes into account share price appreciation plus reinvested dividends expressed as a percentage of investment and adjusted for changes in the Groups capital structure. In order for performance rights to vest and convert to shares the Groups TSR over the performance period must be at or above the 51st percentile against the constituents of the ASX Consumer Discretionary Index excluding News Corporation at each grant date. The comparator group was selected as it represents a range of alternate companies that shareholders could invest in while maintaining portfolio sector balance. News Corporation has been excluded from each comparative group given the extent of its international business operations and exposure to the declining print business. TSR Performance of Allocation that vests Below 51st percentile Nil 51st percentile 50 51st to 75th percentile Straight-line vesting between 50 and 100 At or above 75th percentile 100 There is no re-testing of performance hurdles under the LTI plan. EPS EPS Performance determines vesting for 50 of the performance rights issued in this financial year. In order for performance rights to vest the Companys adjusted EPS performance over the period must be at or above a 3 Compound Annual Growth Rate CAGR. Adjusted EPS is considered appropriate as it excludes the impact of significant or non-recurring items both income and costs and so provides a better measure of underlying long-term performance. Adjusted EPS will be calculated by dividing the adjusted profit after tax attributable to members of SCMGL for the relevant reporting period reported profit after tax adjusted for the after-tax effect of any significant or non-recurring items by the weighted average number of ordinary shares of the Company over the relevant reporting period. EPS Performance of Allocation that vests Below 3 CAGR Nil 3 CAGR 50 3 to 8 CAGR Straight-line vesting between 50 and 100 At or above 8 CAGR 100 How is performance assessed The Group engaged Deloitte to prepare a report to determine the Groups EPS performance and TSR Ranking within the comparator group being the ASX Consumer Discretionary Index excluding News Corporation at each grant date as defined in each of the Long-Term Incentive Plans at each vesting date. 31 SOUTHERN CROSS AUSTEREO ANNUAL REPORT 2015