Warrants programs 

Employee warrant programmes permit employees to acquire shares in the Parent Company. The fair value of the allocated warrants is carried as a personnel cost and gives rise to a corresponding increase in shareholders’ equity. Fair value is calculated as of the date of allotment and is allocated over the period in which the warrants accrue. The fair value of the allotted warrants is calculated according to the Black-Scholes method, taking into consideration the terms and conditions prevailing on the allotment date, including – whenever available – the market value. The amount reported as an expense is adjusted to reflect the actual number of warrants accrued.

Social security expenses attributable to the warrant programmes are recognized in the financial statements. Provisions for social security expenses are calculated as the best estimate at each balance sheet date of the Group’s future liability for social security fees. These provisions are carried over the period in which the benefit accrues. Calculations are based on the fair value of the warrants on each balance sheet date. The provision for social security expenses includes social security expenses for equity instruments.