Strategic report Governance Financial statements Other information SECTION 1: RESULTS FOR THE YEAR NOTES TO THE GROUP FINANCIAL STATEMENTS INCOME STATEMENT CONTINUED 1.10 Share based payments continued Details of the share options and share awards outstanding during the year are as follows: Year ended 30 June 2021 Year ended 30 June 2020 Weighted Weighted Year ended 30 June 2021 Year ended 30 June 2020 average options average options Weighted average Weighted average Share options exercise price Share options exercise price Share options exercise price Share options exercise price No. Pence No. Pence No. Pence No. Pence Weighted average expected SAYE remaining life Outstanding at beginning of the year 826,006 1,238.6 891,943 1,191.4 0-1 years 989,867 986.2 1,279,819 927.9 Granted during the year 217,196 1,232.0 472,607 1,163.0 1-2 years 582,258 853.0 332,321 952.0 Exercised during the year (133,947) 1,290.9 (376,102) 998.5 2-3 years 429,274 616.7 615,820 891.1 Lapsed during the year (1,362) 1,057.0 3-4 years 79,440 0.0 71,948 0.0 – – Forfeited during the year (115,167) 1,268.3 (162,442) 1,315.5 4-5 years 86,784 0.0 86,425 0.0 Outstanding at the end of the year 792,726 1,223.9 826,006 1,238.6 2,167,623 801.6 2,386,333 860.1 Exercisable atthe end of the year 9,555 1,377.0 38,015 992.8 Executive Option Scheme The fair value at the date of grant of options awarded during the year ended 30 June 2021 and the Outstanding at beginning of the year 1,525,442 674.9 1,838,711 759.6 year ended 30 June 2020 has been estimated by the Black-Scholes methodology and the principal Granted during the year 263,284 – 137,104 – assumptions required by the methodology were as follows: Exercised during the year (430,901) 608.4 (304,841) 655.3 Lapsed during the year – – (33,036) 1,329.0 At 30 June At 30 June Forfeited during the year (17,812) – (112,496) 1,150.6 2021 2020 Outstanding at the end of the year 1,340,013 572.6 1,525,442 674.9 Weighted average share price 1,597.37 1,764.9p Exercisable at the end of the year 638,671 1,093.6 425,224 902.7 Expected dividend yields 1.61% 3.05% SIP SAYE Outstanding at beginning of the year 34,885 23.5 34,885 23.5 Weighted average exercise price 1,232p 1,163p Exercised during the year – 23.5 – 23.5 Expected volatility 39% 34% Outstanding at the end of the year 34,885 23.5 34,885 23.5 Risk free rate 0.15% 0.12% Exercisable at the end of the year 34,885 23.5 34,885 23.5 Expected life 3 years 3 years Fair value 441.0p 294.0p The weighted average market share price at the date of exercise for options exercised during the year Executive scheme Weighted average exercise price 0.00p 0.00p was 1,653.7 pence (2020: 1,806.8 pence). Expected volatility 35% 30% The share options outstanding at the end of each year have exercise prices and expected remaining Risk free rate (0.09)% 0.37% Expected life 4.4 years 4.7 years lives as follows: Fair value 1,607.6p 1,806.1p The expected volatility The expected Hargreaves Lansdown plc share price volatility was determined by calculating the historical volatility of the Group’s share price since flotation in May 2007. Prior to 15 May 2007, the Company’s shares were not listed on a stock exchange and therefore no readily available market price existed for the shares. Since 15 May 2007, a quoted market price has been available for the Company’s shares. The Group recognised total expenses related to equity settled share based payment transactions as shown in note 1.5. 150 Hargreaves Lansdown Report and Financial Statements 2021