REMUNERATION REPORT Continued What is the The number of performance rights that vest will depend on how well Myer has performed during the vesting Performance Period. For superior performance, 100 percent of the performance rights will vest. Only a framework? percentage of performance rights will vest for performance below that level. If Myer does not achieve certain minimum thresholds then all the applicable performance rights will lapse, and no performance rights can vest. For the FY2018LTIP offer the following vesting hurdles apply: Performance rights subject to the ROFE Hurdle (50 percent of the Award) The Company’s ROFE at the end of the %of performance rights subject to the ROFE Performance Period Hurdle that will vest (rounded down to the nearest whole number) Up to but excluding 10.0% Nil Including 10.0% and up to but excluding 11.0% Pro rata, with linear progression between 50% and up to 100% 11.0% or greater 100% Performance rights subject to the EPS Hurdle (25 percent of the Award) The EPS Hurdle will be tested over the Performance Period by calculating the compound annual growth rate in the Company’sEPS using EPS at the end of FY2017as the base year. The resulting growth rate will be used to determine the level of vesting for the performance rights subject to the EPS Hurdle. The table below sets out the percentage of performance rights subject to the EPS Hurdle that can vest depending on the Company’s growth in EPS: Growth in EPS % of performance rights subject to the EPS Hurdle that will vest (rounded down to the nearest whole number) Up to but excluding 5.6% Nil Including 5.6% and up to but excluding 10% Pro rata, with linear progression between 50% and up to 100% 10% or greater 100% Performance rights subject to the TSR Hurdle (25 percent of the Award) The TSR Hurdle will be tested following the end of the Performance Period by comparing the Company’s total shareholder return performance over the Performance Period relative to a set peer group. The peer group consists of Standard & Poor’s ASX 200 market constituents (excluding Finance, Health Care, Utilities, Consumer Staples Global Industry Classification Standard (GICS) sectors and Metals and Mining or Oil, Gas and Consumer Fuels GICS Industry groups). The table below sets out the percentage of performance rights subject to the TSR Hurdle that can vest depending on the Company’s relative TSR performance: TSR performance % of performance rights subject to the TSR Hurdle that will vest (rounded down to the nearest whole number) Up to but excluding 50percentileth Nil Including 50percentile and up to but excluding 75Pro rata, with linear progression between 50% andth th percentile up to 100% 75percentile or greaterth 100% Myer Annual Report 2018 37