UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 146
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2021 (continued)
3
Employees (continued)
The fair values of options granted under the PSP scheme during the current and prior year were determined using the Black Scholes Model
or the Monte Carlo Pricing Model as appropriate. The key assumptions used in the model were as follows:
2021 Awards
2021 Awards
2020 Awards
2020 Awards
23 August 2021
24 February 2021
20 February 2020
24 March 2020
Share price at grant date
Exercise price per share
Expected volatility
Expected dividend yield
Risk-free rate
Expected life
€96.16
€0.13
35.9%
0.42%
(0.8%)
3 years
€61.0
€0.13
35.6%
0.51%
(0.7%)
3 years
€61.80
€0.13
26.4%
1.3%
(0.7%)
3 years
€47.10
€0.13
29.3%
1.3%
(0.6%)
3 years
The resulting weighted average fair value of options granted in the year was €51.41 (2020: €42.83).
As set out in the Report of the Remuneration Committee, the number of options that will ultimately vest is contingent on market
conditions such as Total Shareholder Return and non-market conditions such as the Earnings Per Share of the Group. Market conditions
were taken into account in determining the above fair value, and non-market conditions were considered when estimating the number of
shares that will eventually vest. Expected volatility was determined by calculating the historical volatility of the Group and peer company
share prices over the previous 3 years. The Report of the Remuneration Committee sets out the current companies within the peer group.
Deferred Bonus Plan
As set out in the Report of the Remuneration Committee, the Deferred Bonus Plan (DBP) is intended to reward incremental performance
over and above the growth targeted by the annual performance related bonus. Any DBP bonus earned for such incremental performance
is satisfied by the payment of deferred share awards. These shares are held for the benefit of the individual participants for two years
without any additional performance conditions. These shares vest after two years but are forfeited if the participant leaves the Group
within that period.
During the year, nil (2020: 2,272) awards were granted under the DBP and 15,718 (2020: nil) awards were exercised. Nil awards remain
outstanding at 31 December 2021. A charge of €1.5m was recognised in the Consolidated Income Statement for 2021 (2020: nil).
4
Finance Expense and Finance Income
Finance expense
Lease interest
Deferred contingent consideration fair value movement
Bank loans
Private placement loan notes
Fair value movement on derivative financial instrument
Fair value movement on private placement debt
Other interest
Finance income
Interest earned
Net finance expense
2021
€m
2020
€m
3.7
0.1
5.4
26.8
0.3
36.3
3.6
3.1
17.3
6.4
(4.4)
0.1
26.1
36.3
(1.1)
25.0
€3.9m of borrowing costs were capitalised during the period (2020: €0.2m). No costs were reclassified from other comprehensive income
to profit during the year (2020: €nil).
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