APC 2013 Annual Report Download - page 221

CONSOLIDATED FINANCIALSTATEMENTS ATDECEMBER 31, 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Full year 2013 Full year 2012
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 34.50
Discount:
between 15.0% 15.0%
and 20.0% 20.0%
Amount subscribed by employees 3.5 4.8
Total amount subscribed 35.4 47.8
Total number of shares subscribed (millions of shares) 0.7 1.4
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 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% 0
and 20.0% 8.9 20.0% 11.9
(b) Value of the lock-up period for market participant 26.3% 11.7 26.2% 15.6
(c) Value of the opportunity gain(2) 3.3% 1.5 1.3% 1.2
Total expense for the Group (a-b+c) 00
Sensitivity
decrease in interest rate for market participant(3)
l(0.5%) 1.3 (0.5%) 1.6 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.
Calculated using a binomial model.
(
2
(
(
)
2
A decline in the interest rate for market participants reduces the lock-up cost and increases the expense booked by the issuer.
(
3
(
(
)
3
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC