Tiger Brands Integrated Annual Report 2015

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Notes to the financial statements continued
for the year ended 30 September 2015
154 Tiger Brands Limited integrated annual report 2015
23 Share-based payment plans continued
23.1 General employee share option plan continued
Performance shares
The following table illustrates the number of, and movements in, performance shares during the year.
2015
Number
2014
Number
Outstanding at the beginning of the year 128 261 51 600
Granted during the year 56 230 82 650
Forfeited during the year (13 601) (5 989)
Exercised during the year1 – –
Outstanding at the end of the year 170 890 128 261
Exercisable at the end of the year – –
1 The weighted average remaining contractual life for equity-settled options outstanding as at 30 September 2015 is 1,45 years
(2014: 2,02 years).
The weighted average fair value of options granted during the year was R611,30 per option (2014: R375,21
per option).
Options were valued using the Monte-Carlo simulation approach to estimate the price of the options that are subject to
total shareholder return market performance conditions using 50 000 simulations taking into account the dividend cover,
expected exercise patterns and volatility of the Tiger Brands share price.
The following inputs were used:
Date of grant
Strike price
of option
(rand)
Expiry
date
Market price
of underlying
stock at
grant date
(rand)
Expected
volatility
of the
stock over
remaining life
of option
(%)
Expected
dividend
cover
(times)
13/02/2013 12/02/2016 289,50 20,8 2,0
28/02/2014 27/02/2017 244,44 22,4 3,0
04/02/2015 04/02/2018 394,91 23,6 2,9
Volatilities are based on the historical volatility of the Tiger Brands share price matching the expected remaining life of
each option,
Restricted shares
The following table illustrates the number of, and movements in, restricted shares during the year.
2015
Number
2014
Number
Outstanding at the beginning of the year 26 950 –
Granted during the year 108 842 26 950
Forfeited during the year (5 670) –
Exercised during the year1 – –
Outstanding at the end of the year 130 122 26 950
Exercisable at the end of the year – –
1 The weighted average remaining contractual life for equity-settled options outstanding as at 30 September 2015 is 2,1 years
(2014: 2,35 years).
The weighted average fair value of options granted during the year was R359,70 per option (2014: R229,93
per option).
Options were valued using a modified Black-Scholes model taking into account the dividend cover, expected exercise
pattern and volatility of the Tiger Brands share price.