Compagnie des Alpes - 2017 Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

The main terms of the stock option and performance share plans at 30 September 2017 are described below:

Plan no. 15 Plan no. 16 Plan no. 17 Plan no. 18 Plan no. 19 Plan no. 20 18/03/2010 15/03/2012 15/03/2012 13/03/2014 10/03/2016 10/03/2016 15/03/2012 14/03/2013 13/03/2014 08/04/2015 18/03/2016 28/03/2017

Total

Performance share plans*

Date of Shareholders’ Meeting

Implementation date (Board of Directors’ decision)

Number of shares that may be subscribed for at inception

58,593

61,900 56,955

59,925

61,900 59,400

o/w Board of Directors Number of beneficiaries

-

-

-

-

-

-

142

143

165

166

170

159

Date of vesting of performance shares Number of performance shares vested

14/03/2014 13/03/2015 13/03/2016 08/04/2017 18/03/2018 28/03/2019

43,129 43,830

43,575

44,695

-

-

Expired or cancelled stock options/performance shares Outstanding stock options/performance shares

15,464

18,070 13,380

15,230

7,050

300

-

-

-

-

54,850 59,100 113,950

* Grant of which is based on economic factors.

The total change in performance share awards can be summarised as follows:

At 30/09/2017

Grants of performance shares

At 30/09/2016

RIGHTS GRANTED AT BEGINNING OF REPORTING PERIOD

108,475 59,400 -9,230 -44,695

111,830 61,900 -21,680 -43,575

Rights granted Rights expired Rights exercised

Grants adjustments

-

-

RIGHTS GRANTED AT REPORTING DATE

113,950

108,475

The expense recognised for stock option and performance share plan awards was €605 thousand at 30 September 2017 (compared to €409 thousand at 30 September 2016). Plan no. 20 Plan no. 20 was implemented following approval by the Board of Directors on 28 March 2017. This plan consisted of 59,400 performance shares and involved 159 beneficiaries.

Detailed information on the stock options and performance shares can be found in Chapter 3 of the Registration Document on Corporate Governance. It notably details the performance criteria for the full vesting of performance shares. The fair value of the performance shares in Plan no. 20 at 30 September 2017 was €17,739 (compared to €13,690 in the prior reporting period for Plan no. 19).

The main factors used to calculate the cost for the Plan introduced during the fiscal year are:

Dividend cover

2.00%

Stock price volatility

25.00% -0.519%

Risk-free rate for performance shares (two-year duration)

Turnover rate

5.00%

Compared with previous Plans, the percentage of performance shares granted was limited. The valuation assumes grants of 50% for

Executive Committee members (except corporate officers who are not entitled to share grants) and 75% for other beneficiaries. The binomial model is used to measure fair value.

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Compagnie des Alpes I 2017 Registration Document