SECTION 1 -

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New Services: Historical Combined Financial Statements and Notes
December, 31, 2009
The performance shares are subject to vesting conditions based on growth in Accor's return on capital employed (ROCE) and
profit after tax and before non‐recurring items for each of the years 2008 and 2009. Half of the shares vest in each year if both
performance targets are met. If only one of the performance targets is met, a quarter of the shares vest.
For all of the shares to vest, ROCE and profit after tax and before non‐recurring items have to increase by around 10% or more
per year. If ROCE and profit after tax and before non‐recurring items increase by less than 10% (but more than 0%), the number
of vested shares is reduced based on the ratio between the actual increase and 10%.
The shares are subject to a two‐year lock‐up.
The cost of the plan ‐ corresponding to the fair value of the performance shares granted to New Services’ employees ‐ amounts
to €0.5 million and is being recognized on a straight‐line basis over the vesting period under "Employee benefits expense" with a
corresponding adjustment to equity. The fair value of the performance shares was measured as the average of the Accor share
prices for the twenty trading days preceding the grant date multiplied by the number of shares granted under the plan.
At December 31, 2008
In 2008, only one of the two performance criteria was met, leading to a reduction in the fair value of the share grants to €0.12
million, reflecting the expectation that performance criteria would not be met in 2009.
At December 31, 2009
In 2009, the performance criteria were not met.
The fair value of the share grants was unchanged at €0.12 million, of which €0.06 million was recognized in the 2009 financial
statements.
2009 Plan
On May 31, 2009, Accor granted performance shares to senior executives and certain employees including 30,367 performance
shares granted to New Services employees, of which:
- 26,276 performance shares subject to a two‐year vesting period followed by a two‐year lock‐up.
- 4,091 performance shares subject to a four‐year vesting period and no lock‐up period.
The performance shares are subject to three vesting conditions based on growth in Accor's return on capital employed (ROCE)
and profit after tax and before non‐recurring items for each of the years 2009 and 2010. Half of the shares vest in each year if the
performance targets are met. If two of the three targets are met, they will receive roughly one‐third of the shares and if only one
of the three targets is met, they will receive around one‐sixth of the shares.
For all of the shares to vest, all the indicators will have to increase by around 10% or more per year. If the indicators increase by
less than 10% (but more than 0%), the number of vested shares will be reduced based on the ratio between the actual increase
and 10%.
The fair value of these share‐based payments granted to New Services’ employees – representing €0.8 million on March 31, 2009
– is recognized on a straight‐line basis over the vesting period of the performance shares in employee benefits expense, with a
corresponding adjustment to equity. This fair value is based on Accor’s opening share price on the grant date less the present
value of unpaid dividends multiplied by the number of shares granted under the plan.
At December 31, 2009
In 2009, the performance criteria were not met. This led to a reduction in the fair value of the share grants to €0.4 million. Plan
costs recognized in 2009 amounted to €0.1 million