APC 2013 Annual Report Download - page 220

5CONSOLIDATED FINANCIALSTATEMENTS ATDECEMBER 31, 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As regards the first semester 2013, Schneider Electric offers to its Altogether, 2.7million shares were subscribed, increasing the
employees the opportunity to purchase shares at a price of company’s capital by EUR133million as of July11, 2013. Due to
EUR50.89 or EUR47.90 per share, depending on the country, as significant changes in valuation assumptions, specifically the
part of its commitment to employee share ownership, on June5, interest rate available to market participant, the value of the
2013. This represented a 15% to20% discount to the reference lock-up period is higher than the discount cost. Therefore the
price of EUR59.87 calculated as the average opening price Group did not recognize any cost related to the transaction.
quoted for the share during the 20days preceding the
management board’s decision to launch the employee share
issue.
The tables below summarize the main characteristics of the plans, the amounts subscribed, the valuation assumptions and the plans’ cost
for2013 and 2012.
Full year 2013 Full year 2012
Non leveraged plans % Value % Value
Plan characteristics
Maturity (years) 55
Reference price (euros) 59.87 43.12
Subscription price (euros):
between 50.89 36.66
and 47.90 34.5
Discount:
between 15.0% 15.0%
and 20.0% 20.0%
Amount subscribed by employees 98,0 75.9
Total amount subscribed 98,0 75.9
Total number of shares subscribed (millions of shares) 2 2.1
Valuation assumptions
Interest rate available to market participant (bullet loan) (1) 4.8% 5.5%
Five year risk-free interest rate (euro zone) 0.8% 1.5%
Annual interest rate (repo) 1.0% 1.0%
(a) Value of discount:
between 15.0% 8.4 15.0% 6.4
and 20.0% 12.7 20.0% 10.0
(b) Value of the lock-up period for market participant 26.3% 31.3 26.2% 24.1
Total expense for the Group (a-b) 00
Sensitivity
decrease in interest rate for market participant(2)
l(0.5%) 3.4 (0.5%) 2.5
Amounts inmillions of euros, unless otherwise stated.
Average interest rate charged on an ordinary, non-revolving personal loan, with a five-year maturity to an individual with an average
(
1
)
credit rating.
A decline in the interest rate for market participants reduces the lock-up cost and increases the expense booked by the issuer.
(
2
(
(
)
2
218 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC