IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

Chapter 34 / Share-Based Payments (l FRS 2)

395

Outstanding at beginning of

Granted Exercised

Expired

Forfeited

Outstanding

during at the end of

during

Exercise

Expiration

during 2QQ2

during 2QQ2

De~criptiml gf granlr A.C. Moberg: 5-year2003 grant' 5-year 2004 grant 5-year2005 grant" 10-year 2003 grant' IO-year 2004 grant JO-year 2005 grant' P.N. Wakkie: 5-year 2005 grant' IO-year 2005 grant' Subtotal Corporate Executive Board Members Weighted-average exercise price Other employees 5-year 8-year IO-year Subtotal other employees Tota l options) Weighted average– exercise price Weighted-average share price at date of exercise

2.QQ2

tuia:

dais.

2QQ2

2QQQ

~

500.000 50.625 60.750 500.000

500.000 50.625 60.750 500.000

5.20 5.83 6.36 5.20 5.83 6.36

05/04/2008 12/28/2008 04/03/2010 05/04/201 3 12128/2013 04/0312015

50.625 60.750

50.625 60.750

45.000 45.000

45.000 45.000

6.36 6.36

04/03/20 10 04/03/2015

1.312,750

1,312.750

5.44

5.44

11.384,435 9.394.967 10.097.564

67.500

108.284 175,715 56.098

760.272 3.848.413 6.734 .966

8.64 6.36 18.22

606. 177 508.098

8.573.075

67.500

366.749 9.234.101

30.876.966 135.000 32.189.698 135.000

340.097 1.874.547 4.215.162 24.542.142 360.097 1.874.547 4.215.162 25.874.892

11.44 11.14

6.46

6.12

14.83

31.07

11.4

7.30

, Special grant effective May 5. 2005. 1 This represents the maximum (120% Ievelt number of options. J The number of outstanding options at the beginning of 2006 has been adjusted by 1.487.950 options. These optio ns were erroneously reported as forfeited in prior years. as a result of clerical errors. The following table summarizes information about the outstanding share optio ns for all emp loyees at December 31. 2006: Weighted- Weighted- Number average Number average Range of outstanding at Weighted- remaining exercisable at Weighted- remaining exercise December 31. average contractual December 31. average contractual prices EUR 2006 exercise price years 2006 exercise price years 5.20-11.65 21.979.543 7.56 4.76 12.859.968 8.41 3.72 15.18-22.17 396.272 22.17 0.99 396.272 22.17 0.99 25.38-29.39 539.975 29.15 3.03 539.975 29.15 3.03 30.26-34.36 2959 102 32.98 4.13 2959102 32.98 4.13 Tota l 25.874,892 16,755,317 The aggrega te intrinsic value of options exercisable at December 3 1, 2006 , amounts to EUR16. Valuation model and input variables The weighted-average fair value of the share options granted in 2005 and 2004 amounts to EUR2 .30 and EUR2.12 respec tively . These fair values were calculated using the Black-Scholes– Merton formu la and the following assumptions: Weighted-average assumntions Expected life of the option (years);

5-year options 8-yearoptions lO-year options Interest rate Volatility Assumedannual forfeitures Assumed dividend yield

4.0

4.0 5.5 6.0 3.0% 43.0%

6.0 3.5% 45.0%

5.0% 2.0%

5.0% 2.0%

The effects of expec ted early exercise have been incorporated into the calc ulation by using an expected life of the share option that is shorter than the contract ual life. Expec ted volatility has been determined based on historical volatility, whereby the extraordinarily volatile month after Feb– ruary 24, 2003 , has been excluded.