RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

The terms of the free share plans outstanding as of December 31, 2019 are set out in the tables below:

Outstanding as of 12/31/2019

FREE SHARES Date of the Board of Management meeting

Outstanding as of 12/31/2018

Rights issued

Rights exercised

Rights canceled

August 18, 2014

8,748

(8,748)

December 17, 2019

385,759

385,759 385,759

TOTAL

8,748 385,759

(8,748)

The vesting period for beneficiaries’ free shares is a minimum of 3 years from the date on which they are granted by the Board of Management. The conditions for granting free shares are set by the Board of Management.

Of which preferred shares acquired but not yet converted into ordinary shares

Outstanding as of 12/31/2019

PREFERRED SHARES Date of the Board of Management meeting

Outstanding as of 12/31/2018

Rights issued

Rights exercised

Rights canceled

September 2, 2015 July 11, 2016 March 13, 2017 July 19, 2017 March 2, 2018 March 5, 2018 October 19, 2018 January 7, 2019 December 17, 2019

2,884 3,864 1,932

(798)

2,086 3,814 1,932

2,086 3,722

(50)

374 345

374 345

1,157

1,157

140

140

62

62

662 724

662

TOTAL

10,696

(798)

(50)

10,572

5,808

Preferred shares will be converted into ordinary shares at the end of a retention or vesting period based on the extent to which the performance conditions have been achieved.

VALUATION OF STOCK OPTION PLANS AND BONUS SHARES The risk-free interest rate used to calculate the value of these plans is the interest rate on Euro zone Government bonds with the same maturity as the options (source: Iboxx).

With respect to the early exercise of the options, the model assumes rational expectations on the part of option holders, who may exercise their options at any time throughout the exercise period. The implied

volatility used in the calculation is estimated on the basis of past volatility levels. The annual dividend rates used in the valuations are as follows:

Date of the Board of Management meeting

Free shares

August 18, 2014 September 2, 2015 July 11, 2016 March 13, 2017 July 19, 2017 March 2, 2018 March 5, 2018 October 19, 2018 January 7, 2019 December 17, 2019

4.1% 3.9% 3.7% 3.4% 3.3% 3.4% 3.4% 3.0% 3.0% 2.9%

COMPANY SAVINGS PLAN – VALUATION OF COMPANY SAVINGS PLANS The lock-up rate was estimated at 0.98% for the 2019 plan (0.58% for the 2018 plan). The risk-free interest rate used to calculate the value of the company savings plans is the

interest rate on Euro zone Government bonds with the same maturity as the instruments valued (source: Iboxx). The discount related to the lock-up was estimated based on

the risk-free interest rate and the average borrowing rate over 5 years, i.e. respectively 0.3% and 0.98%.

246 i Rubis 2019 Universal Registration Document