APC 2012 Annual Report Download - page 203

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 201
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31, 2012
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Leveraged plans
Full year 2012 Full year 2011
% Value % Value
Plan characteristics
Maturity (years) 55
Reference price (euros) 43.12 56.11
Subscription price (euros):
between 36.66 47.69
and 34.50 44.89
Discount :
between 15.0% 15.0%
and 20.0% 20.0%
Amount subscribed by employees 4.8 10.6
Total amount subscribed 47.8 105.7
Total number of shares subscribed (millions of shares) 1.4 2.4
Valuation assumptions
Interest rate available
to market participant (bullet loan) (1) 5.5% 4.8%
Five year risk-free interest rate (euro zone) 1.5% 2.8%
Annual dividend rate 3.0% 3.0%
Annual interest rate (repo) 1.0% 1.0%
Retail/institutional volatility spread 5.0% 5.0%
(a) Value of discount:
between 15.0% 0 15.0% 5.9
and 20.0% 11.9 20.0% 18.1
(b) Value of the lock-up period for market
participant 26.2% 15.6 14.9% 19.3
(c) Value of the opportunity gain (2) 1.3% 1.2 2.0% 2.6
Total expense for the Group (a-b+c) 0 7.3
Sensitivity
• decrease in interest rate for market participant(3) (0.5%) 1.6 (0.5%) 3.1
Amounts in millions of euros, unless otherwise stated.
(1) Average interest rate charged on an ordinary, non-revolving personal loan, with a fi ve-year maturity to an individual with an average credit
rating.
(2) Calculated using a binomial model.
(3) A decline in the interest rate for market participants reduces the lock-up cost and increases the expense booked by the issuer.
(4) In some countries, due to local law, employees subscribe for undiscounted sums while the bank subscribes at a discount
toprovidetheleverage.