Your Sharesave Scheme Invitation 2017 Explanatory Booklet
This booklet tells you about the De La Rue Sharesave Scheme What are the benefits of Sharesave? Your opportunity to own shares in De La Rue plc. 20% discount on current share price buy shares at the option price fixed at the Date of Invitation. Flexible savings level save a fixed amount from 5 to 500 each month. Flexible payments you can temporarily stop payments for up to 6 months. Early exercise provisions in cases of redundancy, injury, disability, or retirement. A convenient way to save contributions are automatically deducted from your monthly pay. Shares or cash at the end of the savings period you have a choice of either buying shares at the fixed option price with the money saved or taking your savings in cash. Your savings can be returned to you at any time, at your request. Key dates 27 November 2017 Date of Invitation 11 December 2017 Closing date (last day for receipt of applications) 18 December 2017 De La Rue grants options w/c 8 January 2018 February 2018 Option certificates and welcome letters dispatched First deductions from monthly pay 1 March 2018 Saving contract starts 2 DE LA LA RUE SHARESAVE SCHEME
How Sharesave works in 3 easy steps... You can join the Sharesave Scheme if: You are a UK tax payer, and resident in the UK You are employed by De La Rue plc (or one of its subsidiary companies) on 27 November 2017 (the Date of Invitation) and remain employed on 18 December 2017 (the Date of Grant) You can choose to save a fixed amount, from 5 to 500 each month (existing Sharesave Scheme contributions, excluding those contributions that will reach maturity on 1 March 2018, count towards this limit). Payments must be in multiples of 1. The amount you choose will be deducted from your net pay and paid into a Lloyds Bank plc savings account. The deductions will be shown on your pay slip. You are granted an option to buy a number of shares in De La Rue plc at the option price (a 20% discount on the current share price) fixed at the Date of Invitation using the proceeds from your Sharesave account in 3 years time. You will receive an option certificate in January 2018 showing the number of shares you can buy at the end of the 3 year savings term. What happens at the end of the savings term? You can either: buy De La Rue plc shares at the option price using all or part of the money saved under your Sharesave contract. This is called "exercising your option" simply take the cash from the Sharesave contract and use the proceeds as you wish You will be sent explanatory documentation outlining your options closer to the Maturity Date. DE LA RUE SHARESAVE SCHEME 3
How the share discount works When you join Sharesave, the option price is set at a 20% discount on the share price set at the Date of Invitation. The option price is set out in the Invitation Email. If upon maturity the De La Rue plc share price is higher than the option price you could buy shares and potentially make a profit. The following example shows how Sharesave might work if you saved 50 each month: Example share price 5.00* 20% Discount 1.00 Option price at which shares can be purchased at maturity 4.00* * This share price is for illustrative purposes. The actual option price for the 2017 Invitation is set out in the Invitation Email which accompanies this brochure. Any money left over where one whole share cannot be purchased will be repaid to you. Total savings ( 50 x 36) 1,800.00 Number of shares under option 450 Shares 4 DE LA LA RUE SHARESAVE SCHEME
How to join Decide how much you wish to save, (payments must be in multiples of 1 with a minimum monthly contribution of 5). You can save a maximum of 500 each month across all Sharesave Schemes to which you contribute (providing you have not missed any payments, any monthly amounts you have been saving in the maturing 2012 five year or 2014 three year Sharesave Schemes can now be used for the 2017 Invitation). Apply online To apply online you will need access to the Equiniti ESP Portal by going to www.shareview.co.uk/clients/delarue First time users Register to use the ESP Portal by clicking Register now. You will need your account number, last name and your payroll/employee number (found on your payslip) to apply for the 2017 Sharesave Scheme Invitation. Once you have registered click on Sharesave found under the I want to section and follow the instructions to apply Following registration you will receive an activation code allowing you to view details of your Sharesave Scheme(s) online. If you register with your De La Rue email address an activation code will be emailed to you. However, if you register a personal email address your activation code will be posted to your home address and may take up to four days to arrive Please note you do not need to wait for your activation code to apply for the 2017 Sharesave Invitation online. Existing Users You will need your account number, last name, payroll/employee number (found on your payslip) and the ESP Portal/Shareview password which you created previously. If you have forgotten your password you will need to click on the forgotten password link and follow the instructions Online applications must reach Equiniti by 5pm on 11 December 2017. Late applications cannot be accepted. Sharesave Helpline 0371 384 2595* Apply online, it's quick, easy and convenient! All you need is your account number and payroll/employee number. DE LA RUE SHARESAVE SCHEME 5
Your questions answered Will I receive a bonus? Tax-free bonus rates are set by HM Revenue & Customs and there are currently no bonuses payable for the 3 year scheme. How much can I save? You can save between 5 and 500 each month provided you do not breach the maximum savings limit of 500 across all Sharesave Schemes. Providing you have not missed any payments, any monthly amounts you have been saving in the maturing 2014 three year or 2012 five year Sharesave Schemes can now be used for the 2017 Invitation. Can I withdraw from an existing Sharesave Scheme? Yes, you can withdraw from an existing Sharesave Scheme contract in favour of the 2017 Invitation (see below). Please be sure of the existing Sharesave Scheme that you wish to withdraw from as once your instruction is received it cannot be revoked. Your option to buy shares will lapse as soon as your account is closed. If you choose to cancel an existing Sharesave Scheme contract to participate in the 2017 Invitation, there is no guarantee that you will be permitted to save a total monthly amount representing the cancelled savings if a scaling down is necessary (see page 7). How do I withdraw from an existing Sharesave Scheme? To withdraw from an existing Sharesave Scheme you need to notify Equiniti and your HR Department of the Scheme you wish to withdraw from. You can contact Equiniti using the Sharesave Helpline on 0371 384 2595* (or +44 121 415 7087 if calling from outside the United Kingdom). You may also withdraw from an existing Sharesave Scheme using the Equiniti ESP Portal www.shareview.co.uk/clients/ delarue. To do this you will need your Sharesave account number that you wish to withdraw from, your payroll/employee number details and ESP Portal/Shareview password. If you are in any doubt as to the action you should take, you should consult a stockbroker, bank manager, solicitor, accountant or any other independent financial advisor who is authorised to provide such advice. 6 DE LA RUE SHARESAVE SCHEME
What if applications exceed the total number of shares available? A fixed number of shares have been made available for the 2017 Invitation. In the event that applications received exceed the number of available shares, De La Rue plc will grant options over the number of shares available and reduce the monthly savings amount in accordance with the Rules of the Scheme. This process is known as scaling down. Can I withdraw from this Scheme? Yes, you can withdraw from the 2017 Sharesave Scheme at any time. Apart from certain special circumstances (see What happens if? chart on page 8) if you withdraw your savings before the completion of the savings contract you lose your option to buy shares. Over what period can I save? The savings contract is for a period of 36 months. You cannot change the length of the savings period. As the 3 year scheme is proving to be most popular with employees we have decided to withdraw the 5 year scheme for the time being. Can I change the savings amount? Once you have applied, you cannot increase or decrease the amount you initially decided to save. How do I exercise my share option? You will have 6 months from the Maturity Date of your Sharesave Scheme contract to exercise your option. You will be sent explanatory documentation nearer the time. The amount you may use to buy shares at the option price is limited to the total amount saved in your Sharesave account. See the What happens if? chart on page 8 for conditions relating to early exercise under special circumstances such as retirement, injury, disability, redundancy or death. What if the share price goes down? Share prices can go down as well as up. With Sharesave, you don't lose out because you don't have to exercise your option. If, at the time you come to exercise your option, the market value of a De La Rue plc share is lower than the option price, you can choose not to buy shares and take your savings in cash to use as you wish. Will I have to pay tax? Under normal circumstances you will not have to pay income tax on the difference between the option price and the market value of a share at the time of exercise. However, in the event of an exercise (resulting from the Company or business which employs you being sold) within 3 years from the date your option was granted, you may have to pay income tax on any gain. Capital Gains Tax (CGT) may be payable when you come to sell the shares, depending on the amount of gain and your personal circumstances. Are my savings safe? Your savings, which are held with Lloyds Bank plc, are your own and are covered by the Financial Services Compensation Scheme ("FSCS"). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For further information refer to the FSCS website www.fscs.org.uk or call the FSCS on telephone number 020 7741 4100 or 0800 678 1100. Alternatively, log onto www.lloydsbank.com for further information about the Compensation Scheme. DE LA RUE SHARESAVE SCHEME 7
What happens if...? I have to leave work due to injury or disability? I am made redundant? I retire? You can: 1. exercise your option with all or some of the money you have already saved to which you can add up to a further 6 months savings; or 2. withdraw your savings immediately losing the option to buy shares if it is not exercised within 6 months of leaving the Company. I leave the Company for any other reason before the Maturity Date? You will lose your option to buy shares and you can withdraw your savings immediately. I go on maternity leave, or cannot afford to save? If and when your pay is suspended, you may either make alternative arrangements with Equiniti to pay the contributions yourself, or you can postpone up to 6 monthly contributions during your savings term. Each monthly contribution missed will result in the completion of your savings term being postponed by one month. If you miss more than 6 months payments, you lose the option to buy shares. I die? Within 12 months of the date of your death (or 12 months from the Maturity Date if earlier) your Personal Representative may either buy shares with all or some of the money you have saved or withdraw your savings. No further contributions may be made into the Scheme. Keeping you informed Equiniti will send you a Sharesave statement each year, showing how much you have saved in your account. You can view your Sharesave accounts online via the ESP Portal. Register free online at www.shareview.co.uk/clients/delarue Data Protection Your personal details and the knowledge obtained from running your Sharesave account will be held by Equiniti and Lloyds Bank plc for the administration and management of your account. Further information More information about Sharesave in general can be found on the Internet at: www.shareview.co.uk/employees/pages/saveasyouearn.aspx Additional information can also be found on HMRC s website: www.hmrc.gov.uk If you have any questions or would like this booklet in an alternative format, for example braille or audio tape, please contact the De La Rue Sharesave Helpline on 0371 384 2595* (or +44 121 415 7087 if calling from outside the United Kingdom) or Textel/minicom service 0371 384 2255*. The information in this booklet and references to taxation are for guidance only. In the event of any conflict the Scheme Rules and legislation take precedence. Nothing in this booklet should be taken as a recommendation on the part of De La Rue or Equiniti Limited to buy, hold or sell De La Rue plc shares. The value of shares can go down as well as up. If you are in any doubt as to the action you should take, you should consult a stockbroker, bank manager, solicitor, accountant or any other independent financial advisor who is authorised under the Financial Services and Markets Act 2000. *Lines are open 8.30am to 5.30pm (UK time), Monday to Friday, (excluding public holidays in England and Wales).