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NOTES TO THE
FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2015

2.11 Employee benefits (continued)

Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the income statement when incurred.

Other short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service

is provided.

Other long-term benefits
Long-term employee benefit obligations are measured on performance conditions over a period of three years.

The Group adopts an incentive compensation plan, which is tied to the creation of Economic Value Added (“EVA”) for its
management personnel executives. An EVA bank is used to hold incentive compensation credited in any year. Typically
one-third of the accumulated EVA-based bonus, comprising the EVA declared in the financial year and the balance of such
bonus brought forward from preceding years is paid out in cash each year, with the balance being carried forward to the
following year. The balances of the EVA bank in future will be adjusted by the yearly EVA performance of the Group and the
payouts made from the EVA bank.

2.12 Customer loyalty programmes

For customer loyalty programmes, the fair value of the consideration received or receivable from a sales transaction which
attracts customer loyalty credits or points is allocated between the customer loyalty points and the other component of the
sale. The amount allocated to the customer loyalty points is estimated by reference to the fair value of the customer loyalty
points for which they could be redeemed. The fair value of the customer loyalty points is estimated by taking into account the
expected redemption rate and the timing of such expected redemptions. Such amount is deferred and recorded as unearned
revenue until the customer loyalty points are redeemed. At this juncture, the cost of fulfilling the customer loyalty credits is also
recognised.

2.13 Provisions

Provisions are recognised in the statement of financial position when the Group has a present legal or constructive obligation
as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of obligation. If the effect is material, provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability.

2.14 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new equity shares are
recognised as a deduction from equity, net of any tax effects.

Where share capital recognised as equity is repurchased and held as treasury shares, the amount of the consideration paid,
including directly attributable costs, net of any tax effects, is presented as a deduction from equity. Where such shares are
subsequently reissued, sold or cancelled, the consideration received is recognised as a change in equity. No gain or loss is
recognised in the income statement.