Management Report 2020 slide image

Management Report 2020

- Management Report 2020 The movements of the shares granted in the 2015, 2016, 2017, 2018, 2019 and 2020 Annual Program and the respective Strike prices, in BRL, are presented as follows: Grace periods beginning as of grant date As from 11/08/2018 As from- 11/08/2019 Grant year Strike price (R$)1 Balance in 12/31/2019 Granted Canceled Exercised Balance in 12/31/2020 2015 R$ 13.79 14,800 2016 R$ 11.64 139,100 2017 R$ 18.02 580,600 2018 R$ 46.25 388,936 2019 R$ 14.23 613,750 (14,800) (32,200) (92,300) (82,400) (277,800) (35,930) (57,100) (59,700) (22,525) 14,600 2020 R$ 20.03 637,450 1,737,186 637,450 (225,030) (449,725) 220,400 295,906 531,525 637,450 1,699,881 As from- 11/13/2019 As from- 11/08/2020 As from- 11/12/2020 As from- 11/06/2021 As from- 11/12/2021 As from- 11/06/2022 As from- 11/12/2022 As from- 11/06/2023 SLC Agrícola % of options released to be exercised Maximum quantity of shares 1% 16,500 3% 53,100 8% 131,356 18% 298,656 32% 535,962 43% 727,197 61% 1,032,046 72% 1,223,281 85% 1,444,901 100% 1,699,881 1. The 2015 to 2018 plans have the value of their shares before the capital split. The Strike price of the 2015, 2016, 2017, 2018, 2019 and 2020 annual programs were set based on the average of the 90 closing prices of the Company's shares at Bovespa, prior to the approval of the plan, with a 20% discount. The grace periods from the date of granting are as follows: The Company recognizes the cost of the option plan based on the fair value of the options granted, considering the fair value of the options at the date of grant. The model used for pricing the fair value of options is Black-Scholes for the 2015, 2017, 2018, 2019 and 2020 plans. The 2016 plan was priced using the Binomial model. In determining the fair value of the options plans, the Company adopts the "Level 3" valuation technique. The weighted average fair value, the premiums considered, and the economic as- sumptions used for the calculation in the model are presented below: Weighted average fair value Awards Dividends Volatility of share price Risk-free rate of return 1st maturity 2015 R$ 21.36 R$ 7.57 1.00% 2016 R$ 17.20 R$ 5.56 33.44% 1.00% 32.39% 2017 R$ 18.02 R$ 6.93 2018 R$ 46.25 R$ 18.16 2019 2020 R$ 14.23 1.00% 1.00% 32.39% 36.80% R$ 6.05 3.50% 41.45% R$ 20.03 R$ 8.31 5.80% 41.03% 15.41% 12.27% 7.12% 6.95% 4.57% 3.11% 15.72% 11.49% 8.30% 8.01% 5.14% 4.72% 15.78% 11.27% 9.18% 8.86% 5.68% 5.81% 2nd maturity 3rd maturity Period expected up to the maturity 1st maturity 366 366 365 365 365 365 2nd maturity 731 731 730 730 730 730 3rd maturity 1,096 1,096 1,095 1,095 1,095 1,095 1. Fair value calculed based on the share price on the grant date of each plan. 140
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