QUADIENT - 2020 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

31 January 2021

31 January 2020

Fair value of hedging assets at end of period

223.9

232.0

Financial hedging Plans’ position

12.6

18.0

of which recognized in assets

36.3

43.0

of which recognized in liabilities

(23.7)

(25.0)

Amount recognized in the consolidated income statements Service cost

1.7

1.2

Discounting cost

3.3

4.4

Expected return on plan assets

(3.5)

(4.6)

Total retirement benefit expense

1.5

1.0

Amount recognized in the consolidated statements of comprehensive income Actuarial (losses)/gains

5.1

(1.5)

On obligations

10.4

21.0

On hedging assets

(5.3)

(22.5)

Cumulated actuarial (losses)/gains

(0.4)

(5.5)

Actuarial assumptions Discount rate*

1.4 3.0 2.0 2.9

1.8 2.8 2.0 2.7

Expected long-term inflation rate – Retail Price Inflation (RPI)*

Expected long-term inflation rate – Consumer Price Index (CPI)*

Expected long-term rate of annuity increases*

Breakdown of hedging assets Equities

21 23

20 23

Bonds

3

4

Real estate

53

53

Other investments

The above actuarial assumptions relate to the English subsidiary which alone accounts for more than 77 * of the Group’s retirement benefit obligations.

10-3-3: CHANGES IN OBLIGATIONS

Group pension liabilities were as follows over the last five years:

2020

2019

2018

2017

2016

Obligation – present value

211.3

214.0

189.9

202.2

210.1

Fair value of assets

223.9

232.0

204.9

213.8

215.0

Plan (surplus)/deficit

(12.6)

(18.0)

(15.0)

(11.6)

(4.9)

Actuarial gains/(losses): On liabilities

10.4

21.0

(4.3)

1.2

(31.7)

On assets

(5.3)

(22.5)

1.4

(4.4)

27.4

The discount rates used are based on the yields on bonds issued by high quality companies (AA) or, where the market is not liquid, on government bonds with the same maturity as the calculations and the same currency (reference: Iboxx). These references are compliant with the requirements of IAS 19 and are the same as those used in previous years.

The effective return on the Group assets plan in 2020 is a gain of 1.5 compared with 2.3 in 2019. Assumptions such as medical expenses of retired employees are not included in this plan. In terms of salary, only the last salaries at the time the plan was frozen are taken into account, without revaluation (only the annuity is revaluated).

178

UNIVERSAL REGISTRATION DOCUMENT 2020