VINCI - 2005 annual report

2005 2004
Tranche 1 st four-month 3 rd four-month 2 nd four-month 1 st four-month
period 2006 period 2005 period 2005 (*) period 2005 (*)
Rate of return on the VINCI share hoped for 6.30% 6.30% 6.30% 6.66%
Dividend per share
Dividend payable (interim) €0.70 €0.60
Dividend payable (final) €1.15 €1.15
Subscription price €52.78 €45.14 €45.04 €34.86
Share price at date of Board
of Directors’ Meeting €67.75 €56.95 €55.65 €44.50
Share price at date of announcement
to the employees €67.75 €56.95 €55.65 €44.50
Implied volatility of the VINCI share 23% 17% 17% 17%
Estimated number of shares subscribed 963,026 512,022 400,465 978,868
Estimated number of shares issued
(subscription plus employer’s contribution) 1,300,086 640,028 520,604 1,370,416
(*) After the two-for-one share split.
The share price at the end of the subscription period is determined by the
Monte Carlo simulation and the above parameters.
The estimated number of shares subscribed to at the end of the acquisition
period is obtained by an analytical formula, based on linear regression methods,
applied to historical observations of the 2002, 2003, and 2004 plans.
The cost of the unavailability of units in the enterprise savings fund is
measured from the point of view of an investor unable to change his or
her investment for five years. The market risk is estimated using a Value At
Risk approach (probability of maximum loss with a given confidence
interval over a defined timescale).
22.5 MINORITY INTEREST
At 31 December 2005, minority interest in Cofiroute (representing
34.66% of the share capital) amounted to €463.3 million (against
€419.2 million at 31 December 2004) and in CFE (representing
234
VINCI 2005 ANNUAL REPORT
The expense recognised in 2005 in respect of the Group Savings Scheme
applying IFRS 2 amounted to €5 million for the tranche in the second
four-month period of 2005, €6.7 million for the tranche in the third
four-month period of 2005 and €23.6 million for the tranche in the first
four-month period of 2006 of which the subscription price was set and
announced by the Board of Directors on 7 November 2005. Moreover, in
application of IFRS 2, the employer’s contribution actually recognised as
an expense, following the subscriptions made, has been cancelled out by
reclassification directly under equity.
54.62% of the share capital) to €106.1 million (against €93.3 million
at 31 December 2004).