KENANGA ANNUAL REPORT 2020

328 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 55. EQUITY COMPENSATION BENEFITS (CONT’D.) Kenanga’s Group Employees’ Share Scheme (“ESS”) (cont’d.) (1) ESOS (cont’d.) The fair values of share options granted were estimated using the Binomial Option Pricing Model, taking into account the terms and conditions upon which the options are granted. The fair values of share options and the key inputs for share options valuation are as follows: ESOS First Offer Tranches of vesting: First tranche Second tranche Third tranche Fourth tranche Fair value of share options (RM) 0.0856 0.0963 0.1047 0.1111 Share price at offer date (RM) 0.550 0.550 0.550 0.550 Exercise price (RM) 0.575 0.575 0.575 0.575 Expected volatility (%) 26.92% 26.92% 26.92% 26.92% Risk free rate (%) 3.688% 3.688% 3.688% 3.688% Expected dividend yield (%) 4.00% 4.00% 4.00% 4.00% The exercise period is 3 years from vesting date. ESOS Second Offer Tranches of vesting: First tranche Second tranche Third tranche Fair value of share options (RM) 0.1030 0.1140 0.1220 Share price at offer date (RM) 0.595 0.595 0.595 Exercise price (RM) 0.630 0.630 0.630 Expected volatility (%) 28.07% 28.07% 28.07% Risk free rate (%) 3.883% 3.883% 3.883% Expected dividend yield (%) 4.00% 4.00% 4.00% The exercise period is 3 years from vesting date.