BIMB Integrated Annual Report 2017

26. EMPLOYEE BENEFITS (CONTINUED) Share-based payments arrangement of Takaful Malaysia (continued) During the year, the number of the shares in Takaful Malaysia granted are as follows: NUMBER OF ORDINARY SHARES RESTRICTED PERFORMANCE SHARES SHARES TOTAL (‘000) (‘000) (‘000) Outstanding at 1 January 2016 826 6,489 7,315 Granted during the year – 4,592 4,592 Exercised during the year (767) (4,340) (5,107) Forfeited during the year (59) (565) (624) Outstanding at 31 December 2016/1 January 2017 – 6,176 6,176 Granted during the year – 3,208 3,208 Exercised during the year – (2,202) (2,202) Forfeited during the year – (795) (795) Outstanding at 31 December 2017 – 6,387 6,387 During the financial year, 2,201,815 shares (2016: 5,107,355 shares) in Takaful Malaysia were exercised. The weighted average share price at the date of exercise for the year was RM2.52 (2016: RM1.79). The fair value in Takaful Malaysia services received in return for Restricted Shares and Performance Shares granted are based on the fair value of Restricted Shares and Performance Shares granted respectively, measured using Monte Carlo Simulation, with the following inputs: PERFORMANCE SHARES FAIR VALUE AND ASSUMPTION 2017 2016 Fair value at grant date 4.159 3.580 Weighted average share price 4.159 3.580 Share price at grant date 4.020 4.040 Expected volatility (weighted average volatility) 23.67% 26.74% Option life (expected weighted average life) 3 3 Expected dividends 0.0295 0.0364 Risk-free profit rate (based on Malaysian government bonds) 3.46% 3.46% NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 229 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis t