EXEL industries - 2019 Universal Registration Document

Consolidated fi nancial statements Notes to the consolidated fi nancial statements

13.3 Pension liabilities Depending on the country, Group employees are eligible for de fi ned contribution and de fi ned bene fi t retirement plans. De fi ned contribution plans Under this type of retirement plan, the Company only pays contributions to a body (private or public) that is independent from the Company andwhich is then responsible for paying out retirement bene fi ts to the Company’s retirees. Personnel expenses and contributions payable are recognized by the Group when they are incurred. De fi ned bene fi t plans These plans concern: „ the Group’s French employees, who receive a lump sum severance payment on retirement; „ employees of the British company HOZELOCK Ltd., which has set up a pension scheme whose assets are managed by an Independent Trustee. HOZELOCK Ltd.’s pension scheme was closed to newmembers on April c 6, 1997 and the rights of existing members were frozen on April c 6, 2001. For de fi ned bene fi t plans, the Group recognizes a provision for pension liabilities corresponding to the amount of liabilities calculated by independent actuaries, deducting plan assets managed by external funds (insurance companies or pension funds).

Main assumptions used to estimate retirement commitments at September c 30, 2019: For French companies „ Growth rate of wages (including in fl ation): 2% (the same as in 2018). „ Discount rate used (including in fl ation): 0.49% (compared to 1.44% in 2018). „ Retirement age: 65 c years. „ Life expectancy: Mortality table TF 00-02. „ Employee turnover rate: based on the demographic data speci fi c to each Group entity and actual experience. „ Social charges rate of 45% applied to total liabilities. „ Average weighted duration of the plans: 14 c years. With regard to the English company HOZELOCK Ltd. „ Growth rate of pension payments: 1.7% - 5.0%. „ Discount rate used: 1.9% ( vs . 2.9% in 2018). „ Rate of in fl ation: 3.0% (3.1% in 2018) „ Retirement age: 63 c years. „ Life expectancy: 107% of the S2PA Mortality Table. „ Average weighted duration of the plans: 18 c years. The cost for the period consists of: „ expenses in connectionwith retirement liabilities recognized under “current operating income”; „ interest recognized under “net fi nancial income”; „ impacts from amending the plan, recognized in “non-recurring income and expense” (note c 20).

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Gross

Social charges Total 09/30/2019

Total 09/30/2018

(in € thousands)

Service costs in the fi scal year

492

222

714

695

Discount costs

40

18

58

60

Cost of interest

2,387

-

2,387

2,273

Change in plan

1,450

-

1,450

-

COST FOR THE FISCAL YEAR

4,369

240

4,609

3,028

Changes in pension and similar liabilities break down as follows:

Gross

Social charges Total 09/30/2019

Total 09/30/2018

(in € thousands)

PENSION LIABILITIES AT THE BEGINNING OF THE FISCAL YEAR

90,292

3,880

94,171

96,061

Cost for the fi scal year

4,369

240

4,609

3,028

Actuarial gains and recognized in equity

11,263

438

11,701

(1,932)

Retirement bene fi ts paid

(2,621)

(248)

(2,869)

(2,471)

Job protection plan

(925)

(416)

(1,342)

Change in exchange rates

126

-

126

(515)

Change in Group structure

-

-

-

-

PENSION LIABILITIES AT THE END OF THE FISCAL YEAR

102,503

3,893

106,396

94,171

EXEL Industries Group I 2019 Universal Registration Document

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