Carrefour - 2017 Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements CARREFOUR | 2017 REGISTRATION DOCUMENT 261 Stock option plans 10.2.1 There were no longer any Carrefour SA stock option plans expired in July 2017. Movements in these plans in 2017 were as outstanding at December 31, 2017, since the 2010 plans based on follows: performance conditions and continued employment in the Group 2017 2016 Options outstanding at January 1 1,823,200 7,287,307 of which, exercisable options 1,823,200 7,287,307 Options granted during the year (1) - - Options exercised during the year - - Options cancelled or that expired during the year (2) (1,823,200) (5,464,107) Options outstanding at December 31 - 1,823,200 of which, exercisable options - 1,823,200 The Compensation Committee decided not to grant any Carrefour SA stock options in 2017. (1) The 2010 plans expired in July 2017. The 1,823,200 options that had not been exercised as of that date were cancelled. (2) On March 21, 2017, the Board of Directors of Atacadão decided to award options on existing or new Atacadão shares. This stock option plan was approved by Atacadão’s Shareholders’ Meeting held on the same date. Options awarded under this plan represent a maximum number of 9,283,783 shares, or 0.47% of Atacadão’s share capital. The options are subject to the following vesting conditions: one-third of the options vest at the date of the company’s IPO; ● one-third of the options will vest 12 months after the date of the ● IPO; one-third of the options will vest 24 months after the date of the ● IPO. The options may be exercised up to March 21, 2023 at a price of 11.7 Brasilian reals. The table below shows the main assumptions used to calculate the fair value of the options awarded in 2017. Fair value of the options at the grant date Brazil 2017 “Pre-IPO” Plan Exercise price (in R$) 11.7 Estimated fair value of the share (in R$) 11.7 Volatility (in %) 29.02% Dividend growth (in %) 1.35% Risk-free interest rate (in %) 10.25% Expected life of share option (years) 2.72 Model Binomial Fair value option at grant date (in R$) 3.73 Movements during the period in the stock option plan were as follows: 2017 Options outstanding at January 1 - of which, exercisable options - Options granted during the year 7,838,783 Options exercised during the year - Options cancelled or that expired during the year - Options outstanding at December 31 7,838,783 of which, exercisable options 2,612,928