Saab 2014 Annual Report Download - page 113

FINANCIAL INFORMATION – NOTES
Note 37, cont.
and position, conditions in the stock market and other circumstances. If the Board of
Directors determines that this is not the case, the Board of Directors will reduce the
number of performance shares that will be matched to the lower number of shares
that the Board of Directors considers appropriate.
1) Adjusted for acquisitions and divestments as well as exchange rate differences.
2) Adjusted for acquisitions and divestments as well as non-recurring items.
3) As of 1 January 2014, free cash flow is reported for the Group. It was previously named opera-
ting cash flow. The performance target related to cash flow in the Performance Share Plan
2014 is named ”operating cash flow” according to the decision by the Annual General Meeting.
In the Board’s proposal to the Performance Share Plan 2015 it suggests that the performance
target related to cash flow that in the 2014 programme is named ”operating cash flow” will be
named ”free cash flow” in the 2015 programme.
4) Adjusted for acquisitions and divestments as well as non-recurring items.
2010 Share Matching Plan
In April 2010, Saab’s Annual General Meeting resolved to adopt a fourth Share
Matching Plan with terms comparable to previous years’ plans. Matching took place
on three occasions in 2014 and once in January 2015, at which point the plan had
concluded.
2011– 2013 Share Matching Plan
For the 2011–2013 period, Saab’s Annual General Meeting resolved to renew the
Share Matching Plan with terms comparable to previous years’ plans.
Number of Series B shares purchased and number of participants,
Share Matching Plan, 2010-2013
Share Matching Plan
Number of
shares
Number of
p articipants
2010 303,033 2,315
2011 495,874 2,970
2012 491,142 3,475
2013 323,937 3,781
2010 Performance Share Plan
For 2010, Saab’s Annual General Meeting resolved to adopt a renewed, third Per-
formance Share Plan with terms comparable to previous years’ plans. Following
the close of the measurement period on 31 December 2013 it was determined that
the requirement of annual average earnings per share growth of 5 to 15 per cent
during the three-year period had been achieved and totalled approximately 77 per
cent. Accordingly, participants have received a maximum matching award. Match-
ing has taken place on three occasions in 2014 and once in January 2015 with a
total of 119,907 shares.
2011 Performance Share Plan
For 2011 Saab’s Annual General Meeting resolved to adopt a renewed, fourth
Performance Share Plan with revised terms as described above. After the measu-
rement period, on 31 December 2014, it was determined that the requirement of
annual average earnings per share growth of 5-15 per cent had not been achieved
during the three-year period, due to which no performance shares will be allocated
in 2015.
2012 Performance Share Plan
For 2012, Saab’s Annual General Meeting resolved to adopt a renewed, fifth Per-
formance Share Plan with terms comparable to the 2011 Share Plan. At year-end
2014, it was determined that the annual target of 5-15 per cent average earnings
per share growth is unlikely to be achieved during the three-year period.
2013 Performance Share Plan
In 2013, Saab’s Annual General Meeting resolved to adopt a renewed, sixth
Performance Share Plan with terms comparable to the 2011 Share Plan.
Number of Series B shares purchased and number of participants,
Performance Share Plan, 2010–2013
Share Matching Plan
Number of
shares
Number of
p articipants
2010 46,972 115
2011 85,474 176
2012 72,213 177
2013 44,989 164
2014 Share Matching Plan and Performance Share Plan
In April 2014, Saab’s Annual General Meeting resolved in the same way as in pre-
vious years to offer employees a Share Matching Plan and a modified Performance
Share Plan. The Performance Share Plan, which covers senior executives and key
employees, entitles participants to 2-7 matching shares, depending on the
employee category. The plans commenced in January 2015 and continue through
the calendar year 2015. The two plans comprise a maximum of 1,340,000 shares.
Share Matching Plan 2010 2011 2012 2013 Total
Number of matching shares
at beginning of the year 278,869 463,804 411,988 - 1,154,661
Allotted during the year
(purchased shares) - - 68,311 323,937 392,248
Early share matching -7,326 -10,805 -7,683 -1,398 -27,212
Ordinary share
matching -224,665 - - - -224,665
Forfeited matching
shares -3,674 -5,155 -3,660 -4,763 -17,252
Number of matching
shares eligible at year-end 43,204 447,844 468,956 317,776 1,277,780
Number of participants,
31 December 2014 1,935 2,651 3,191 3,678
% of total number of
employees 14 19 23 26
Average remaining maturity,
years 0.0 0.7 1.7 2.7
Performance share Plan 2010 2011 2012 2013 Total
Number of matching shares
at beginning of the year 43,844 79,370 62,525 - 185,739
Allotted during the year
(purchased shares) - - 9,688 44,989 54,677
Early share matching - -2,068 -861 -560 -3,489
Ordinary share
matching -36,696 - - - -36,696
Forfeited matching
shares - -4,166 -2,450 -486 -7,102
Number of matching
shares eligible at year-end 7,148 73,136 68,902 43,943 193,129
Number of participants,
31 December 2014 95 156 168 161
Average remaining maturity,
years 0.0 0.7 1.7 2.7
Total number of shares
eligible at year-end 2010 2011 2012 2013 Total
Share Matching Plan 43,204 447,844 468,956 317,776 1,277,780
Performance Share Plan 7,148 73,136 68,902 43,943 193,129
Less: Shares included in
both plans - -73,136 -68,902 -43,943 -185,981
Total 50,352 447,844 468,956 317,776 1,284,928
Recognised expense for above-mentioned plan,
including social security expenses 2014 2013
Share Matching Plan 2009 - 17
Share Matching Plan 2010 17 16
Share Matching Plan 2011 23 20
Share Matching Plan 2012 28 10
Share Matching Plan 2013 11 -
Performance Share Plan 2009 - 5
Performance Share Plan 2010 5 5
Performance Share Plan 2011 - -3
Performance Share Plan 2012 -3 3
Performance Share Plan 2013 2 -
Total 83 73
The expense for the share plans is included in operating income and is recognised in
SAAB ANNUAL REPORT 2014 – 109