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183
2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
Movements in stock options in 2014
were as follows:
Options outstanding at December 31, 2013
15,303,093
W
of which, exercisable options
14,857,011
Options granted in 2014
(1)
0
Options exercised in 2014
(2)
0
Options cancelled or that expired in 2014
(3,803,223)
W
of which, expired options
(3)
(3,792,357)
W
of which, cancelled options – Presence Plans
(2,311)
W
of which, cancelled options – Performance Plans
(8,555)
Options outstanding at December 31, 2014
11,499,870
W
of which, exercisable options
11,499,870
(1) The Remunerations Committee decided not to grant any stock options in 2014.
(2) No options were exercised in 2014 because they were out of the money.
(3) The 2007 plan expired in May 2014. The 3,792,357 options not exercised at that date were canceled.
The
main data
and assumptions used to value the options are described
below.
The options’ fair value is calculated using the Black & Scholes option
pricing model. Until 2009, volatility, dividend growth and interest rate
assumptions were determined by reference to a benchmark produced by
a panel of banks. Since 2010, volatility and dividend growth assumptions
are determined by reference to historical data and the interest rates
applied are based on the yield curve for zero-coupon bonds published
by Reuters on the option grant date. In addition, the 2010 options have
a seven-year life.
Fair values were determined on the grant dates of the various plans using
the model described above and assumptions considered as reasonable at
those dates. The information in the following table has not been adjusted
for the impact of the July 5, 2011 demerger from Dia.
Fair value of the options at the grant date
2007 Presence
Plan
2008 Presence
Plan I
2008 Presence
Plan II
Exercise price
( in €)
56.40
45.26
45.26
Reference share price in € on the grant date
52.23
32.8
43.94
Volatility
(in %)
25.54%
32.25%
33.15%
Dividend growth
(in %)
12.96%
2.25%
2.34%
Interest rate
(in %)
4.50%
4.80%
4.80%
Fair value of the options
(in €)
10.92
7.31
14.74
2014 amortization
(in %)
0%
0%
0%
Accumulated amortization at December 31, 2014
(in %)
100%
100%
100%
Fair value of the options at the grant date
2009 Presence &
Performance Plans
2010 Presence II &
Performance Plans
Exercise price
(in €)
33.7
34.11
Reference share price in € on the grant date
31.54
35.26
Volatility
(in %)
43.35%
22.85%
Dividend growth
(in %)
(34.95)%
3.33%
Interest rate
(in %)
3.30%
(1)
Fair value of the options
(in €)
12.67
5.96
2014 amortization
(in %)
0%
3%
Accumulated amortization at December 31, 2014
(in %)
100%
100%
(1) Reuters page on the pricing date.