Results of the 2014 study on employee shareholding

1. May 27th, 2014
Results of the 2014 study on
employee shareholding

2. Agenda
 Who is Eres?
 Employee shareholding of listed companies in France and
Europe
 Overview of employee share ownership in France
 Employee share ownership programs in France in 2013
 2014 trends
Document issued by Eres 2

3. WHO IS ERES ?
Document issued by Eres 3

4. Eres is a team of 28 specialists in profit sharing,
Employee
ownership
Profit
sharing
Retirement
plans
Deferred
compensation
28
experts
4Document issued by Eres

5. Founders
& employees
100%
85%
100%
with 3 business lines,
consulting
asset
management
3 business lines
5Document issued by Eres
insurance

6. Consutling
Manageme
nt of
dedicated
funds
Registrar
Stock
options
and free
shares
Listed or
not listed
shares
France
and
internal
40 clients
as fund manager or registrar
100 assignments
since 2005
1 000 employees
registered in our books
Eres, expert of employee ownership
6Document issued by Eres

7. Consulting
• Audit
• Actuarial
• Call for tenders
Brokerage
• DC solution :
• Individual plans
• Partnership with
Swiss Life
• 150 corporate clients
Asset
management
• Multi manager fund
• Lifecycle solutions
• Multi manager
mandate
A new approach for pension schemes
7
Pension
schemes
Document issued by Eres

8. Selection of the best asset managers for profit sharing
and retirement schemes
8Document issued by Eres

9. 10 000 corporate
clients
120 000 employee
investors in our plans
3 000 consulting
assignments in profit
sharing or pension
schemes
Eres has a broad customer base from small business to
major companies
9Document issued by Eres

10. Eres assets under management are above 1,5 billion €
2009
300M€
2011
500M€
2016
1,5Md€
2007
1st independant
10th on the market
10Document issued by Eres

11. EMPLOYEE SHARE OWNERSHIP OF LISTED COMPANIES
IN FRANCE AND EUROPE
Document issued by Eres 11

12. Methodology
 Our study is based on public data1 (annual reports, press releases,
internet sites) and information from EFES (European Federation of
Employee Share Ownership), and specifically on the 120 largest listed
companies in France from 2005 to 2013.
 We also analysed the plans initiated in 2014 to assess the trends of
the on going year
 The study is focusing on collective plans (proposed to all common
employees, in all countries or at least in France) and not on top
executives’ plans such as stock options plans (discretionary plans). It
also excludes companies where employees can subscribe at any time
in a company shares with no specific advantage such as discount or
matching contribution.
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1 Companies which do not communicate on such plans neither in annuel reports nor in press releases are not analyzed.

13. In 2013, France is still the leading country for collective employee
share ownership
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0%
20%
40%
60%
80%
100%
0% 10% 20% 30% 40% 50% 60%
%oflistedcompanieswithacollectiveplan
Democratization rate (1)
Cartography of the employee shareholding in listed companies
in Europe en 2013
Sources : EFES, Eres – 2014 study on employee share ownership
Germany:
% of capital held by common
employees : 1,0%
Spain:
% of capital held by
common employees : 0,3%
France :
• 82% of companies with a
« democratic » plan
• Democratization rate : 47,2%
• % of capital held by common
employees (non top executives) :
3,7%
UK :
% capital held by
common employees :
1,4%
Europe :
• 48% of companies with a
« democratic » plan
• Democratization rate : 28%
• % of capital held by
common employees : 1,6%
Sweden :
% of capital held by common
employees : 1,1%
(1) % of employee shareholders in total staff
Sample : 2 200 European listed companies (250 in France) with a market cap over 200 M€
Legend : the size of the bubble is proportional to the % of capital held by common employees (non top executives)
Austria :
% of capital held by
common employees : 2,5%

14. In 2013, more than one third of European shareholder
employees and more than one fourth of market cap is held by
French employees
Document issued by Eres 14
67,4 Md€
184,6 Md€
Market cap held by employees in Europe en 2013
(in billions of euros)
France Reste de l'Europe
Total : 252 Md€
Sources : EFES, Eres – 2014 study on employee share ownership
3.5 M
5,7 M
Number of European shareholder employees in 2013
(in millions)
France Reste de l'Europe
Total : 9,2 M
Sources : EFES, Eres – 2014 study on employee share ownership
Sample : 2 200 European listed companies (250 in France) with a market cap over 200 M€
Other European countries Other European countries

15. OVERVIEW OF EMPLOYEE SHARE OWNERSHIP IN FRANCE
Document issued by Eres 15

16. For the last 3 years, employee ownership in major French
listed companies remained stable
Document issued by Eres 16
81%
50%
3.8%
81%
47.7%
3.7%
82%
47.2%
3.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Pourcentage d’entreprises avec un plan
« démocratique »
Taux de démocratisation (1) Part du capital détenue par les salariés
(non dirigeants)
Evolution of employee share ownership in listed companies in France
2011 2012 2013
Sources : EFES, Eres – 2014 study on employee share ownership
Sample : 250 French listed companies
(1) % of employee shareholders in total staff
% of companies with a
« democratic » plan
Democratization rate (1) % of capital held by common
employees (non top executives)

17. Companies have different employee share ownership
strategies and culture
Document issued by Eres 17
Frequency of plans
Strong culture
Changing mind
% of capital held
 The strategies can be classified depending on :
 The frequency of common employees plans from 2005 to 2013 :
0%, <25%, >75%
 The percentage of capital held by common employees : < or > 8%
75%
25%
8%
Very strong
culture
No culture

18. There is no correlation between the frequency of plans and
the % of capital held by employees
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0%
33%
67%
100%
0% 4% 8% 12% 16% 20% 24%
Frequencyofplansfrom2005to2013
% of capital held
Classification of the 120 major listed French companies
according to their employee share ownership culture
Sources : EFES, Eres – 2014 study on employee share ownership
Very strong
culture
Changing mind
Strong culture

19. Employee share ownership is much higher in top 40
companies (CAC40) than in the next 80 companies
Document issued by Eres 19
13%
45%
34%
20%
28%
25%
40%
21%
28%
28%
6%
13%
0%
20%
40%
60%
80%
100%
CAC40 NEXT80 TOTAL
Breakdown of 120 French listed companies
according to their employee share ownership culture
Aucune culture d'actionnariat
salarié
Entreprises avec une volonté
changeante
Forte culture d'actionnariat
salarié
Très forte culture d'actionnariat
salarié
No culture
Changing mind
Strong culture
Very strong culture
Sources : EFES, Eres – 2014 study on employee share ownership

20. The percentage of capital held by employees in CAC40 companies has
reached its peak since 2006 : 4,4%
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3.1%
3.6%
4.4%
1.9% 2.0% 2.3%
0%
1%
2%
3%
4%
5%
2006 2007 2008 2009 2010 2011 2012 2013
Employee share ownership evolution* in France between 2006 and 2013
CAC40 NEXT80
Sources : EFES, Eres – 2014 study on employee share ownership
* Evolution of the share of capital held by all employees (incl. Management)

21. The democratization rate has increased in the long term
and is now well established over 50% in the major French
listed companies
Document issued by Eres 21
47%
55%
42%
51%
30%
35%
40%
45%
50%
55%
60%
2007 2008 2009 2010 2011 2012
Evolution of democratization rate* in France
CAC40 NEXT80
Sources : EFES, Eres – 2014 study on employee share ownership
* % of employee shareholders in total staff

22. Due to the crisis and the rise of social taxes, the number of
plans dropped in 2012 and 2013 in the major French listed
companies
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18
12
22
19
23 23
19
13 11
7
15
11
11
13
19
18
13
14
0
10
20
30
40
50
2005 2006 2007 2008 2009 2010 2011 2012 2013
Number of companies in SBF120
having proposed at least one plan in year
NEXT80
CAC40
Sources : EFES, Eres – 2014 study on employee share ownership

23. Since 2005, the percentage of major French listed companies
proposing a plan has fluctuated with a recent drop in 2012 and
2013
Document issued by Eres 23
45%
30%
55%
48%
58% 58%
48%
33%
28%
9%
19%
14% 14%
16%
24%
23%
16% 18%
0%
10%
20%
30%
40%
50%
60%
2005 2006 2007 2008 2009 2010 2011 2012 2013
% of top 120 listed French companies having at least undertaken one
operation in 2013
CAC40
NEXT80
Sources : EFES, Eres – 2014 study on employee share ownership

24. EMPLOYEE SHARE OWNERSHIP PROGRAMS
IN FRANCE IN 2013
Document issued by Eres 24

25. In the top 120 French listed companies
 25 companies proposed at least one plan :
increase of capital-AK and/or free shares-AGA
 28 plans for all employees : 22 AK and 6 AGA
 Among plans where information is available, 9
propose only a « classic » FCPE (mutual fund
100% invested in shares) and 8 propose a
classic FCPE coupled with a « leveraged » FCPE
(mutual fund with partial guarantee)
 In average 90% of employees are eligible (AK)
 55% of SBF120 companies offer a matching
contribution
 The average discount of stock price is 17%
 60% of companies proposed a subscription via
a FCPE and direct holding* (40% only via a
FCPE)
Subscription results
 Average amount subscribed by
employee :
4 520€
 Average subscription rate** :
44%
Employee share ownership programs in France in 2013
Document issued by Eres 25
Source : Eres – 2014 study on employee share ownership
* Direct holding is used in countries where FCPE is not allowad
** In 2013, 76% of companies communicated on the subscription
rate. It can be assumed that companies which communicate on
their subscription rate are the ones where the plan was most
successfull.

26. In 2013, the average amount per employee who subscribed is around 4
500 euros
Document issued by Eres 26
4,650 €
4,305 €
2,500 €
3,000 €
3,500 €
4,000 €
4,500 €
5,000 €
CAC40 NEXT80
Average amount subscribed per employee in the French top 120
listed companies en 2013
Sources : Eres – 2014 study on employee share ownership

27. In 2013, 80% of plans proposed to common employees are
increases of capital
Document issued by Eres 27
21%
79%
Types of plans proposed by the top 120 French listed companies in 2013
Attribution gratuite d’actions Augmentation de capital
Sources : Eres – 2014 study on employee share ownership
Note : employee shareholding schemes based on direct purchase of shares are computed with increases of capital
Free shares Increase of capital

28. The top 40 French companies proposed more « leveraged »
FCPE compared to the next 80
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50%
57%
53%
50%
43%
47%
0%
10%
20%
30%
40%
50%
60%
70%
CAC40 NEXT80 SBF120
Type of mutual funds proposed by top 120 French listed
companies in 2013
formule classique formule classique + à effet de levier
Source : Eres – 2014 study on employee share ownership
Note : In 2013 information on the type of structures proposed by the top 120 French listed companies is available in our database in 80% of cases
classic FCPE classic FCPE + « leveraged » FCPE

29. The subscription results of 2013 plan show no impact of the
discount rate on the subscription rate
Document issued by Eres 29
Source : Eres – 2014 study on employee share ownership
Note : in 2013, all subscription plans offered a discount
* In 2013, 76% of companies communicated on the subscription rate. It can be assumed that companies which communicate on their
subscription rate are the ones where the plan was most successfull.
Average discount rate : 17%
Average subscription rate* : 44%
0%
5%
10%
15%
20%
25%
0% 20% 40% 60% 80% 100%
Discountrate
Subscription rate
Discount rate versus subscription rate* in employee share owenrship plans
proposed by the top 120 French listed companies in 2013

30. In 2013, the coverage rate* had little impact on the
subscription rate, whereas subscription rates tend to be
smaller abroad
Document issued by Eres 30
Average coverage rate* : 90%
Average subscription rate**: 44%
50%
60%
70%
80%
90%
100%
110%
120%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Coveragerate*
Subscription rate
Coverage rate* versus Subscription rate** in employee share owenrship plans
proposed by the top 120 French listed companies in 2013
Source : Eres – 2014 study on employee share ownership
*Coverage rate may exceed 100% if the operation is also offered to former/retired employees.
**In 2013, 76% of companies communicated on the subscription rate. It can be assumed that companies which communicate on their
subscription rate are the ones where the plan was successfull.

31. In 2013, 55% of companies paid a matching contribution,
most of the time in cash
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 In 2013, 54,5% of 120 French major listed companies paid
a matching contribution.
 One third of companies proposed a matching contribtion
in free shares.
33%
67%
Types of matching contribution paid by the 120 French
major listed companies in 2013
Abondement sous forme d'attribution
d'actions gratuites
Abondement en espèces (par tranche de
versement)
Source : Eres – 2014 study on employee share ownership
Matching contribution in cash
Matching contribution in free shares

32. In 2013, the majority of the 120 French major listed
companies proposed a subscription via a FCPE (mutual
fund) and direct holding
Document issued by Eres 32
33%
50%
40%
67%
50%
60%
0%
10%
20%
30%
40%
50%
60%
70%
CAC40 NEXT80 SBF120
Subscription options in plans of 120 French major listed companies in 2013
Souscription via un FCPE Souscription via un FCPE + en direct
Source : Eres – 2014 study on employee share ownership
* In 2013, information on subscription modalities (Mutual fund – FCPE / direct) is available in our database in 70% of cases
Subscription via a FCPE Subscription via a FCPE + direct holding

33. 2014 TRENDS
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34. From January to May 2014, 13 companies have initiated a
new plan as in the same period in 2013
Document issued by Eres 34
4
9
13
5
8
13
0
2
4
6
8
10
12
14
CAC40 NEXT80 SBF120
Number of companies among the 120 French major listed companies which
proposed a new plan (from January to May)
2013 2014
Source : Eres – 2014 study on employee share ownership

35. Eres
4, avenue Hoche
75008 Paris
contact@eres-group.com
+33 (0) 1 49 70 99 00
www.eres-group.com
@eres_group
@PartageDuProfit
Document issued by Eres 35

36. Eres, siège social au 4 avenue Hoche, 75008 Paris, Société par Actions Simplifiée au capital de
89 876 euros, 484 868 948 RCS Paris, ORIAS N°0702 3020, courtier en assurances RC Professionnelle et
Garantie Financière conforme aux articles L530-2 du Code des Assurances.
Il est précisé expressément que Eres n’est pas conseil juridique, et que le destinataire fera son affaire de
la relecture de toute documentation par tout conseil juridique de son choix et de l’éventuel dépôt ou
enregistrement auprès des administrations compétentes. Eres est tenue par une obligation de
confidentialité absolue vis-à-vis de tiers sur l’ensemble des informations portées à sa connaissance en
cours de mission et sans limitation de durée.
Eres gestion, filiale à 100% de Eres, est une société de gestion de portefeuille, agrément AMF
n°GP07000005, Société par Actions Simplifiée au capital de 1 000 000 euros, RCS PARIS 493 504 757.
Eres assurances, filiale à 100% de Eres, est une société d’assurances, Société par Actions Simplifiée au
capital de 1 395 000 euros, RCS PARIS 809 096 233.
Document issued by Eres 36
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