DISCLOSURES ON REMUNERATION MATTERS

The table below sets out, for ease of reference, the relevant sections of the remuneration details of directors and officers including share schemes and interest in share capital.

Remuneration disclosure
Executive directors’ and officers’ remuneration
Non-executive directors’ remuneration
Declaration of full disclosure
Interest of directors of the company in share capital
Details of share schemes (including performance conditions)
Interest of executive directors of the company in share-based instruments
Special resolution setting out remuneration to be paid to directors for their services as directors of the company for the ensuing year
Non-binding advisory vote on the company’s remuneration policy
 

DIRECTORS’ AND PRESCRIBED OFFICERS’ EMOLUMENTS AND INTERESTS

Executive directors' remuneration (R000)

The executive directors' remuneration for the year ended 31 March 2015 was as follows:

Name Cash package Cash
bonus*		 Retirement
and medical
contributions		 Total
         
P H Staude 8 301 4 616 1 166 14 083
M H Munro 4 283 1 842 632 6 757
12 584 6 458 1 798 20 840

The executive directors' remuneration for the year ended 31 March 2014 was as follows:

Name Cash package Cash 
bonus*		 Retirement
and medical
contributions		 Total
         
P H Staude  7 651  5 991  1 060  14 702
M H Munro  3 966  2 478  585  7 029 
B G Dunlop (to 31 August 2013) 1 681  979  2 799 # 5 459 
   13 298  9 448  4 444  27 190 

The requirement to include prescribed officers is covered by the above executive directors, as they exercise effective management and control.

* Bonuses are reported to match the amount payable to the applicable financial period.
# Includes accrued leave and retirement gratuity.

Executive directors' share incentive gains:


   2015  2014 
        
P H Staude  12 650  966 
M H Munro  2 691  5 611 
B G Dunlop (to 31 August 2013)    322 
   15 341  6 899 

Non-executive directors' remuneration (R000)


   12 months to 31 March 2015    12 months to 31 March 2014 
                    
Name  Fees  Other  Total  Fees  Other  Total 
S M Beesley (from 17 June 2014) 235  31  266          
F Jakoet  325  249  574  281  237  518 
J John  325  318  643  305  299  604 
R P Kupara  325  159  484  305  139  444 
J B Magwaza (to 30 July 2014) 309  73  382  1 075  134  1 209 
A A Maleiane (to 1 February 2015) 250     250  305     305 
T N Mgoduso  325  110  435  280  103  383 
N Mjoli-Mncube  325  344  669  305  324  629 
S G Pretorius  325  253  578  305  221  526 
C B Sibisi  928  162  1 090  305  103  408 
   3 672  1 699  5 371  3 466  1 560  5 026 

In the table above, "Fees" relate to the services as directors on the board and "Other" relates to fees paid for services as committee members.

Declaration of full disclosure

Other than the remuneration disclosed in this note, which was paid by the company, no consideration was paid to, or by, any third party, or by the company itself, in respect of services of the company’s directors, as directors of the company, during the year ended 31 March 2015.

Interest of directors of the company in share capital

The aggregate holdings as at 31 March 2015 of those directors of the company holding issued ordinary shares of the company are detailed below. Holdings are direct and beneficial except where indicated otherwise.

Name  2015  2014 
Executive directors:       
P H Staude  326 467  258 759 
M H Munro  114 517  98 098 
   440 984  356 857 
Non-executive directors:       
F Jakoet  5 068  5 068 
Director who retired     12 275 
   5 068  17 343 

EMPLOYEE SHARE INCENTIVE SCHEMES

Details of awards in terms of the company’s share incentive schemes:

The Tongaat-Hulett Group Limited 2001 Share Option Scheme

Under this share option scheme, which ended in the current financial year, participating employees were awarded share options in the company. On vesting, the employee was entitled to purchase shares in the company and then retain or sell the shares at the market price, thereby benefiting from the appreciation in the share price. The option price and number of unexercised options after the unbundling of Hulamin were apportioned into a Tongaat Hulett component and a Hulamin component, as detailed in the 2007 Annual Report. The unexercised options at 31 March 2014 comprised 16 200 Tongaat Hulett options, which were exercised in the current year, and 385 500 Hulamin options, which lapsed.

Share Appreciation Right Scheme 2005

Under the share appreciation right scheme, participating employees are awarded the right to receive shares equal to the difference between the exercise price and the grant price, less income tax payable on such difference. The employee therefore participates in the after tax share price appreciation in the company. The vesting of the right is conditional on the achievement of Tongaat Hulett performance levels over a performance period.

Expiring 
seven years from 		 Grant 
price 
Rand 		 Fair 
value 
Rand 		 Number of 
rights
31 March
2014 		 Granted  Exercised  Forefeited  Number of 
rights 
31 March
2015 
               
20 August 2007  88,84  15,97  556 792     556 792       
25 April 2008  92,74  16,93  712 204     471 471     240 733 
22 May 2009  75,06  12,54  918 586     327 807     590 779 
31 May 2010  97,49  20,00  1 077 239     414 024     663 215 
31 May 2011  90,42  17,50  1 434 673     654 249     780 424 
29 May 2012  110,21  21,73  1 352 021     7 029     1 344 992 
29 May 2013  126,85  24,30  1 400 989     6 097  10 816  1 384 076 
26 May 2014  121,93  23,96     1 598 882     20 881  1 578 001 
         7 452 504  1 598 882  2 437 469  31 697  6 582 220 

The estimated fair value costing of these outstanding share appreciation rights was determined using the binomial tree valuation model and non-market performance conditions, based on the following significant inputs:

Exercise price    The share price at grant date, as noted above. 
Expected option life    80 months (assume contractual plus a leaving percentage of 5%). 
Risk-free interest rate    7,78% (2013: 6,73%, 2012: 7,26%, 2011: 7,95%, 2010: 7,71%, 2009: 7,66%, 2008: 8,75%). 
Expected volatility    Expected volatility of 27,57% (2013: 28,34%, 2012: 28,51%, 2011: 30%, 2010: 26,78%, 2009: 28% and 2008: 27%) is based on historical volatility determined by the  statistical analysis of daily share price movements over the past three years. 
Expected dividends    The measurement of the fair value of the share appreciation rights did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 2014 award (2013 and 2012: 2,6%, 2011: 2,75%,  2010: 2,5%, 2009: 3,5% and 2008: 3,44%). 
Weighted average share price    As above. 
Expected early exercise    Early exercise is taken into account on an expectation basis. 
Time constraints    Three years from grant date. 
Performance (vesting) conditions    An increase in headline earnings per ordinary share as determined by the Remuneration Committee. Retesting of the performance condition is not allowed with effect from the 2010 award. 
Non-market performance conditions    Growth in headline earnings per share. 
Market performance conditions    No market conditions. 
Weighted average remaining life:     
Expected    2014: 74 months; 2013: 62 months; 2012: 50 months; 2011: 38 months; 2010: 26 months; 2009: 14 months and 2008: 1 month. 
Contractual    84 months. 

Long Term Incentive Plan 2005

Under the long term incentive plan, participating employees are granted conditional awards. These awards are converted into shares on the achievement of performance conditions over a performance period.

Expiring three years from  Issue price 
Rand 		 Fair value 
Rand 		 Number of  conditional 
awards 
31 March  2014 		 Granted  Settled  Lapsed/ forefeited  Number of 
conditional 
awards 
31 March  2015 
               
31 May 2011  90,42  40,54  202 238     88 107  114 131    
29 May 2012  110,21  47,69  338 932     705  448  337 779 
29 May 2013  126,85  49,22  539 655     631  5 549  533 475 
26 May 2014  121,93  51,79     578 733     6 954  571 779 
         1 080 825  578 733  89 443  127 082  1 443 033 

The estimated fair value costing of these outstanding conditional share awards was determined using the Monte Carlo Simulation model and non-market performance conditions, based on the following significant inputs:

Exercise price    The share price at grant date, as noted above. 
Expected option life    34 months (assume contractual plus a leaving percentage of 5%). 
Expected dividends    The measurement of the fair value of the conditional share awards did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 2014, 2013 and 2012 awards. 
Weighted average share price    As above. 
Time constraints    Three years from grant date. 
Performance (vesting) conditions    For the 2014 and 2013 awards, 25% of the award will be subject to the TSR condition, 25% to the ROCE condition, 25% to a Sugar Production condition and 25% will be subject to the Large Land Deals of the company condition. No retesting of the performance condition is allowed. 
    For the 2012 award, 25% of the award will be subject to the TSR condition, 25% to the ROCE condition, 25% to a Sugar Production condition and 25% will be subject to the establishment of a regulatory framework for Electricity in South Africa. For the 2011 award, 50% of the LTIP award will be subject to the TSR condition and 50% will be subject to the ROCE condition. No retesting of the performance condition is allowed. 
Non-market performance conditions    For the 2014 and 2013 awards, ROCE, Sugar Production and the Large Land Deals conditions. For the 2012 award, ROCE, Sugar Production and the establishment of a regulatory framework for Electricity in South Africa. 
Market performance conditions    Total shareholder return (TSR). 
Weighted average remaining life:     
   Expected    2014: 26 months; 2013: 14 months; and 2012: 2 months. 
   Contractual    36 months. 

Long Term Incentive Plan 2005 - Retention Awards

Under the long term incentive plan, participating employees are granted conditional awards which are converted into shares after the required service period is completed.

Expiring
four years from  		 Issue price 
Rand 		 Fair value 
Rand 		 Number of 
conditional 
awards 
31 March  2014  		Granted  Number of 
conditional 
awards 
31 March  2015 
           
31 May 2011  90,42  65,87  13 200     13 200 
14 November 2011  94,26  84,31  20 000     20 000 
28 November 2011  90,86  81,27  20 000     20 000 
16 November 2012  126,71  92,88  72 442     72 442 
11 March 2013  139,39  102,18  15 000     15 000 
29 May 2013  126,85  92,99  99 205     99 205 
26 May 2014  121,93  89,38     139 767  139 767 
         239 847  139 767  379 614 

The estimated fair value costing of these outstanding conditional share awards was based on the following significant inputs:

Exercise price  The share price at grant date, as noted above. 
Expected option life  46 months (assume contractual plus a leaving percentage of 5%) for the May 2011, 2012, 2013 and 2014 awards and 48 months (assume contractual plus a leaving percentage of 0%) for the November 2011 awards. 
Expected dividends  The measurement of the fair value of the conditional share awards did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 26 May 2014 award (November 2012, March 2013 and May 2013 awards: 2,6% and 2011 awards: 2,75%). 
Weighted average share price  As above. 
Time constraints  Four years from grant date. 
Performance (vesting) conditions  There are no performance (vesting) conditions other than the passage of time. 
Non-market performance conditions  No non-market conditions. 
Market performance conditions  No market conditions. 
Weighted average remaining life:   
   Expected  26 May 2014: 38 months; 29 May 2013: 26 months; 16 November 2012: 20 months;
11 March 2013: 23 months; 31 May 2011: 2 months; 14 November 2011: 7 months; 
and 28 November 2011: 8 months. 
   Contractual  48 months. 

Deferred Bonus Plan 2005

Under the deferred bonus plan, participating employees purchase shares in the company with a portion of their after-tax bonus. These pledged shares are held in trust by a third-party administrator for a qualifying period, after which the company awards the employee a number of shares in the company which matches those pledged shares which are then released from trust.

Expiring three years from  Issue price 
Rand 		 Fair value 
Rand 		 Number of conditional awards 31 March 2014  Granted  Settled  Number of conditional awards 31 March 2015 
             
30 May 2011  93,35  71,30  37 885     37 885    
30 May 2012  111,11  87,31  66 008        66 008 
29 May 2013  126,85  100,49  63 630        63 630 
26 May 2014  121,93  96,60     75 950     75 950 
         167 523  75 950  37 885  205 588 

The estimated fair value costing of the outstanding deferred bonus share awards was based on the following significant inputs:

Share price at grant date  The price at which the deferred bonus share is issued, as noted above. 
Expected option life  34 months (assume contractual plus a leaving percentage of 5%). 
Expected dividends  The measurement of the fair value of the deferred bonus shares did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 2014, 2013 and 2012 awards. 
Weighted average share price  As above. 
Time constraints    Three years from grant date. 
Performance (vesting) conditions  There are no performance (vesting) conditions other than the passage of time. 
Non-market performance conditions  No non-market conditions. 
Market performance conditions  No market conditions. 
Weighted average remaining life:   
   Expected  2014: 26 months; 2013: 14 months and 2012: 2 months. 
   Contractual  36 months. 

The deferred bonus shares were purchased by the participating employees on 2 June 2014 in respect of the 2014 award.
(2013 award purchased 31 May 2013 and the 2012 award purchased 30 May 2012).

Interest of executive directors of the company in share-based instruments

The Original Share Option Schemes

The option price and number of unexercised options after the unbundling of Hulamin were apportioned into a Tongaat Hulett component and a Hulamin component, as detailed in the 2007 Annual Report. The Tongaat Hulett options were exercised by 31 March 2014, while the remaining 60 000 unexercised options in Hulamin lapsed during the current year.

Share Appreciation Right Scheme 2005

Name  Expiring  
seven years 
from 		 Grant price Rand  Fair value 
Rand 		 Number of  
rights 31 March 2014 		 Granted  Exercised  Number of rights 31 March 2015  Performance condition and time constrained 
                 
P H Staude  20 August 2007  88,84  15,97  71 073     71 073       
   25 April 2008  92,74  16,93  75 720     75 720       
   22 May 2009  75,06  12,54  91 120        91 120    
   31 May 2010  97,49  20,00  74 289        74 289    
   31 May 2011  90,42  17,50  87 397        87 397    
   29 May 2012  110,21  21,73  93 530        93 530  93 530 
   29 May 2013  126,85  24,30  104 578        104 578  104 578 
   26 May 2014  121,93  23,96    115 081     115 081  115 081 
            597 707  115 081  146 793  565 995  313 189 
                         
M H Munro  20 August 2007  88,84  15,97  23 830     23 830       
   25 April 2008  92,74  16,93  25 807        25 807    
   22 May 2009  75,06  12,54  30 857        30 857    
   31 May 2010  97,49  20,00  23 638        23 638    
   31 May 2011  90,42  17,50  28 669        28 669    
   29 May 2012  110,21  21,73  31 873        31 873  31 873 
   29 May 2013  126,85  24,30  34 476        34 476  34 476 
   26 May 2014  121,93  23,96    47 818     47 818  47 818 
            199 150  47 818  23 830  223 138  114 167 

Long Term Incentive Plan 2005

Name  Expiring three years from  Issue price Rand  Fair value
Rand 		 Number of conditional awards 31 March 2014  Granted  Settled  Lapsed  Number of conditional awards 31 March 2015  Performance condition and time constrained 
                   
P H Staude  31 May 2011  90,42  40,54  34 829     15 173  19 656       
   29 May 2012  110,21  47,69  39 355           39 355  39 355 
   29 May 2013  126,85  49,22  47 660           47 660  47 660 
   26 May 2014  121,93  51,79     49 144        49 144  49 144 
            121 844  49 144  15 173  19 656  136 159  136 159 
                             
M H Munro  31 May 2011  90,42  40,54  11 384     4 959  6 425       
   29 May 2012  110,21  47,69  12 696           12 696  12 696 
   29 May 2013  126,85  49,22  15 709           15 709  15 709 
   26 May 2014  121,93  51,79     20 420        20 420  20 420 
            39 789  20 420  4 959  6 425  48 825  48 825 

Deferred Bonus Plan 2005

Name  Expiring 
three years 
from 		 Issue price 
Rand 		 Fair value 
Rand 		 Number 
of 
conditional 
awards 
31 March 
2014 		 Granted  Delivered  Number 
of 
conditional 
awards 
31 March 
2015 		 Conditional 
awards 
time 
constrained 
                 
P H Staude  30 May 2011  93,35  71,30  10 856     10 856       
   30 May 2012  111,11  87,31  17 090        17 090  17 090 
   29 May 2013  126,85  100,49  14 720        14 720  14 720 
   26 May 2014  121,93  96,60     17 451     17 451  17 451 
            42 666  17 451  10 856  49 261  49 261 
                          
M H Munro  30 May 2011  93,35  71,30  3 492     3 492       
   30 May 2012  111,11  87,31  5 493        5 493  5 493 
   29 May 2013  126,85  100,49  4 821        4 821  4 821 
   26 May 2014  121,93  96,60     5 539     5 539  5 539 
            13 806  5 539  3 492  15 853  15 853 

The deferred bonus shares were purchased by the participating employees on 2 June 2014 in respect of the 2014 award. (2013 award purchased 31 May 2013 and the 2012 award purchased 30 May 2012).

The share awards were made and exercised at various times and the average share price for the period was R150,90 (2014: R121,32).

The gains made by directors are reflected here.

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