CFSL Integrated Report 2025

215

Introduction

Group Overview

Leadership

Strategy & Performance

Explanatory Notes 30 September 2025

38. EMPLOYEE OPTION PLAN (CONTINUED)

Share options outstanding at the end of the year have the following expiry dates and exercise prices: Grant date Expiry date Exercise price

Share options

2025

MUR 7.75 8.48 9.43 13.09

2024

1,471,666

11-Nov-27 13-Dec-27 26-Apr-29 01-Sep-30

2,970,000 1,610,000 2,545,000

11 November 2022 13 December 2022

940,000

1,951,667 3,665,000 8,028,333

26 April 2024

–

1 September 2025

7,125,000

Total

The weighted average remaining contractual life of options outstanding at end of period is 0.94 years. Fair value of options granted

The assessed fair value at grant date of options granted during the year ended 30 September 2025 was MUR 2.9 per option (2024 – MUR 1.5). The fair value at grant date is determined using an adjusted form of the Black-Scholes model which includes a Monte Carlo simulation model that takes into account the exercise price, the term of the option, the impact of dilution (where material), the share price at grant date and expected price volatility of the underlying share, the expected dividend yield, the risk-free interest rate for the term of the option, and the correlations and volatilities of the peer group companies. The model inputs for options granted during the year ended 30 September 2025 included: (a) options are granted for no consideration and vest over a three-year period. Vested options are exercisable for a period of five years after vesting; (b) exercise price: MUR 13.09 (2024 – MUR 9.43); (c) grant date: 1 September 2025 (2024: 26 April 2024); (d) expiry date: 01 September 2030 (2024: 26 April 2029); (e) share price at grant date: MUR 16.05 (2024: 26 April 2024 MUR10.90); (f) expected price volatility of the company’s shares: 18.24% (2024: 18.08%); (g) expected dividend yield: 6.13% (2024: 5.09%); and (h) risk-free interest rate: 5.38% (2024: 3.78%). Expenses arising from share-based payment transactions Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit expense were as follows: 2025 MUR m 2024 MUR m Options issued under employee option plan 7.5 1.4 Total 7.5 1.4