Share-based incentive programs

As of December 31, 2022, the Company had three ongoing long-term sharesavings schemes.

LTIP 2020

LTIP 2020 is a long-term share savings scheme that runs during the period 2020-2022. The scheme means that the employee’s participation requires an investment in Xbrane’s shares, the so-called savings shares, up to a total of 1,500 shares, acquired before January 31, 2021. For each savings share (1) the employee has acquired, the employee may acquire one (1) matching share and up to three (3) performance shares. The performance of performance shares is based on the fulfillment of the targets set by LTIP 2020 and which are related to the total return on Xbrane’s share. In addition, eligibility for shares is conditional on the participant being employed by the Group and all his or her savings shares being allocated to the scheme during the vesting period. At the initiation of the scheme, the matching share was valued at SEK 41.9, performance share no. 1 to SEK 14.4, performance share no. 2 to SEK 11.0, performance share no. 3 to SEK 9.1. No dividends are expected to be paid during the vesting period. The value of the performance shares considers the probability that the stock return conditions will be met, as calculated by Monte Carlo simulation. Opening number of share rights at financial year 2020 amounted to 246,000 (61,500 matching shares and 184,000 performance shares) and closing number at financial year 2020 amounted to 164,300 (41,075 matching shares and 123,225 performance shares). The costs for the scheme include the value of the shares and social costs for the amounts that the employees are expected to be allocated, which are expensed continuously during the period 2020–2022.

LTIP 2021

LTIP 2021 is a long-term share savings scheme that runs during the period 2021-2023. The scheme means that the employee’s participation requires an investment in Xbrane’s shares, the so-called savings shares, up to a total of 1,500 shares, acquired before January 31, 2022. For each savings share (1) the employee has acquired, the employee may acquire one (1) matching share andup to three (3) performance shares. The performance of performance shares is based on the fulfillment of the targets set by LTIP 2021 and which are related to the total return on Xbrane’s share. In addition, eligibility for shares is conditional on the participant being employed by the Group and all his or her savings shares being allocated to the scheme during the vesting period. At the initiation of the scheme, the matching share was valued at SEK 111.0, performance share no. 1 to SEK 38.2, performance share no. 2 to SEK 29.2, and performance share no. 3 to SEK 24.1. No dividends are expected to be paid during the vesting period. The value of the performance shares considers the probability that the stock return conditions will be met, as calculated by Monte Carlo simulation. Opening number of share rights at financial year 2021 amounted to 390,000 (97,500 matching shares and 292,500 performance shares) and closing number at financial year 2021 amounted to 164,300 (23,790 matching shares and 95,160 performance shares). The costs for the scheme include the value of the shares and social costs for the amounts that the employees are expected to be allocated, which are expensed continuously during the period 2021–2023.

LTIP 2022

LTIP 2022 is a long-term share savings scheme that runs during the period 2022-2024. The scheme means that the employee’s participation requires an investment in Xbrane’s shares, the so-called savings shares, up to a total of 1,500 shares, acquired before January 31, 2023. For each savings share (1) the employee has acquired, the employee may acquire one (1) matching share and up to three (3) performance shares. The performance of performance shares is based on the fulfillment of the targets set by LTIP 2022 and which are related to the total return on Xbrane’s share. In addition, eligibility for shares is conditional on the participant being employed by the Group and all his or her savings shares being allocated to the scheme during the vesting period. At the initiation of the scheme, the matching share was valued at SEK 86.6, performance share no. 1 to SEK 29.8, performance share no. 2 to SEK 22.8, and performance share no. 3 to SEK 18.8. No dividends are expected to be paid during the vesting period. The value of the performance shares considers the probability that the stock return conditions will be met, as calculated by Monte Carlo simulation. Opening number of share rights at financial year 2022 amounted to 135,000 (33,750 matching shares and 101,250 performance shares) and closing number at financial year 2022 amounted to 135,000 (33,750 matching shares and 171,000 performance shares). The costs for the scheme include the value of the shares and social costs for the amounts that the employees are expected to be allocated, which are expensed continuously during the period 2022–2024.