2013-vinci-annual-report

Fair value of the performance share plans
The fair value of the performance shares has been calculated by an external actuary at the respective grant dates of the shares on the basis
of the following characteristics and assumptions:
2013 plan 2012 plan 2011 plan
Price of VINCI share on date plan was announced (in €) 35.47 36.37 44.87
Fair value of performance share at grant date (in €) 28.57 28.00 36.90
Fair value compared with share price at grant date (in %) 80.56% 77.00% 82.25%
Original maturity (in years) – vesting period 2 years 2 years 2 years
Risk-free interest rate (*) 0.11% 0.36% 1.81%
(*) Two-year government bond yield in the eurozone.
An expense of €60 million was recognised in 2013 in respect of performance share plans for which vesting is in progress (April 2013, April
2012 and May 2011 plans), compared with €69 million in 2012 (April 2012, May 2011 and July 2010 plans).
18.3 Group savings plans
VINCI’s Board of Directors defines the conditions for subscribing to Group savings plans in accordance with the authorisations granted to
it by the Shareholders’ General Meeting.
Group savings plan – France
In France, VINCI issues new shares reserved for employees three times a year at a subscription price that includes a 5% discount against the
average stock market price over 20 trading days. Subscribers also benefit from an employer contribution with an annual maximum of €2,500
per person. The benefits granted in this way to Group employees are recognised in profit or loss and are valued in accordance with IFRS 2
on the basis of the following assumptions:
ˇˇlength of subscription period: four months;
ˇˇlength of period during which funds are frozen: five years.
The estimated number of shares subscribed to at the end of the subscription period is calculated based on a linear regression method applied
to historical observations of the plans between 2002 and 2013, taking account of the cost of restrictions on the availability of units in the
savings fund.
The opportunity cost of the frozen shares subscribed to is estimated from the point of view of a third party holding a diversified portfolio
and prepared to acquire the frozen shares in return for a discount, which should correspond to the return demanded by a purchaser on own
funds allocated to hedge against market risk over the period in which the shares are frozen (five years). The market risk is assessed on an
annual basis applying a value-at-risk approach.
First four–month period of 2014 Third four–month period 2013 Second four–month period 2013
Group savings plans – France
(1 January – 30 April) (1 September – 31 December)
(1 May – 31 August)
Anticipated return from VINCI shares 6.80% 7.14% 6.53%
Subscription price (in €) 41.34 36.95 35.73
Share price at date of Board of Directors’ Meeting 46.35 37.60 36.62
Historical volatility of the VINCI share price 27.26% 33.35% 34.17%
Estimated number of shares subscribed 1,941,687 326,604 365,298
Estimated number of shares issued
(subscriptions plus employer contribution)
2,382,009 400,669 448,138
Group savings plans – France
First four-month period of 2013 Third four-month period 2012 Second four-month period 2012
(1 January – 30 April) (1 September – 31 December) (1 May – 31 August)
Anticipated return from VINCI shares 6.61% 7.16% 7.30%
Subscription price (in €) 32.45 29.71 32.40
Share price at date of Board of Directors’ Meeting 34.59 34.47 36.83
Historical volatility of the VINCI share price 34.42% 35.18% 34.14%
Estimated number of shares subscribed 2,233,759 849,537 795,160
Estimated number of shares issued (subscriptions
plus employer contribution)
2,740,314 1,100,150 1,017,804
2013
2012
CONSOLIDATED FINANCIAL STATEMENTS 249
Group savings plans – international
In the first half of 2013, in accordance with authorisations given to the Board of Directors by the Shareholders’ General Meeting and pursuant
to a decision taken by the Chairman and Chief Executive Officer on 20 February 2013, VINCI initiated new savings plans for the employees
of certain foreign subsidiaries. Known as Castor International, the plans now cover 19 countries after five new countries were added in 2013
(Austria, Brazil, Chile, Indonesia and Luxembourg) in addition to the 14 already covered in 2012 (Germany, Belgium, Canada, Spain, the USA,
Morocco, Netherlands, Poland, Portugal, the Czech Republic, Romania, the UK, Slovakia and Switzerland).