Atos - Registration Document 2016
E Financial
E.4
Consolidated financial statements
Actuarial assumptions Group obligations are valued by independent actuaries, based on assumptions that are periodically updated. These assumptions are set out in the table below:
United Kingdom
Eurozone
2015
2015
2016
2016
Discount rate as at December 31 st
2.80%
3.90% 1.40% ~ 1.95% 2.05% ~ 2.65%
Inflation assumption as at December 31 st
RPI: 3.25% RPI: 3.10% CPI: 2.25% CPI: 2.10%
1.45%
1.75%
to plans with a shorter duration. The higher discount rate for the Eurozone applies to plans with a duration of more than 15 years, the lower discount rate applies The inflation assumption is used for estimating the impact of indexation of pensions in payment or salary inflation based on the various rules of each plan. Sensitivity of the defined benefit obligations of the significant plans to the discount rate and inflation rate assumptions is as follows:
Discount rate +25bp
Inflation rate +25bp
United Kingdom main pension plans
-5.2% -4.1%
+4.0% +2.4%
German main pension plans
independent actuaries and do not include cross effects of the various assumptions, they do however include effects that the These sensitivities are based on calculations made by
inflation assumption would have on salary increase assumptions for the United Kingdom.
Plan assets Plan assets were invested as follows:
E
December 31, 2015
December 31, 2016
Equity
17% 68%
18% 70%
Bonds/Interest Rate Swaps
Real Estate
5% 3% 7%
5% 1% 6%
Cash and Cash equivalent
Other
Of these assets, 92% is valued on market value, 6% relates to investment managers and 2% relates to insurance contracts. property, private equity and infrastructure investments where valuations are based on the information provided by the of the interest rate hedging program operated by the Atos United Kingdom pension plans, which aims to hedge a significant A significant part of the Bonds and Interest Rate Swaps are part portion of funding liabilities. None of the plans are hedged for longevity risks. Atos securities or assets used by the Group are not material.
Situation of the United Kingdompension funds and impact on contribution for 2017 The Group expects to contribute € 47.4 million to its United Kingdom schemes next year versus € 48.8 million in 2016.
Prepaid pension situations on balance sheet
the United Kingdom, and is supported by appropriate refund expectations according to IFRIC 14. The net asset of € 96.2 million mostly relates to one scheme in
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