Tiger Brands Integrated Annual Report 2015

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Tiger Brands Limited integrated annual report 2015 155
23 Share-based payment plans continued
23.1 General employee share option plan continued
The following inputs were used:
Date of grant
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
03/12/2014 02/12/2017 367,85 23,4 2,9
10/09/2014 09/09/2017 319,00 23,0 3,0
04/02/2015 03/02/2018 394,91 23,6 2,9
21/05/2015 20/05/2018 293,75 24,8 2,9
Volatilities are based on the historical volatility of the Tiger Brands share price matching the remaining life of each
option.
Cash settled
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in,
cash-settled options during the year.
2015 2014
Number WAEP Number WAEP
Outstanding at the beginning of the year 1 764 355 207,85 2 372 827 192,88
Granted during the year – – – –
Forfeited during the year (785 498) 226,12 (70 800) 210,30
Exercised during the year (282 235) 187,34 (537 672) 141,48
Outstanding at the end of the year1 696 622 238,19 1 764 355 207,85
Exercisable at the end of the year 267 042 204,45 530 283 168,68
1 The weighted average remaining contractual life for cash-settled options outstanding as at 30 September 2015 is 2,0 years
(2014: 2,36 years).
The range of exercise prices for options outstanding at the end of the year was R281,00 to R399,25
(2014: R130,59 to R299,83).
The weighted average share price at the date of exercise was R366,96 (2014: R291,39).
Cash 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. Subject to certain performance conditions, one-third of the
cash-settled share options vest on each of the third, fourth and fifth anniversary dates from the date of the original grant
date. All the cash-settled options mature six years after the grant date.