RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

The change in provisions for employee benefits breaks down as follows:

2019

2018

(in thousands of euros)

PROVISIONS AS OF JANUARY 1

45,573

45,757

Newly consolidated/de-consolidated companies

329 999

Interest expense for the period Service cost for the period

1,752 7,865

5,301

Expected return on fund assets for the period

(4,457) (2,099) 11,546 (3,777)

(8)

Benefits paid for the period

(4,855) (2,445)

Actuarial losses/(gains) and limitation of assets

Reclassification into liabilities related to a group of assets held for sale

Translation differences

209

495

PROVISIONS AS OF DECEMBER 31

56,611

45,573

Post-employment benefits Post-employment benefits as of December 31, 2018 and 2019 were assessed by an independent actuary, using the following assumptions:

2019

Assumptions (within a range depending on the entity)

2018

Discount rate Rate of inflation

0 to 14.25%

0 to 16.30%

0 to 2%

0 to 12%

Rate of wage increases Age at voluntary retirement

0 to 12.5%

0 to 13.5%

60 to 66 years old 60 to 66 years old

Actuarial differences are offset against shareholders’ equity. The discount rates used were determined by reference to the yields on high-quality corporate bonds (minimum rating of AA)

with terms equivalent to those of the commitments on the date of assessment. The calculation of the sensitivity of the provision for commitments to a change of one-quarter of a percentage point in the

discount rate shows that the total obligation and the components of earnings would not be significantly affected, in view of the total sum recognized in the Group’s accounts under employee benefits.

Provision for commitments

Sensitivity assumptions (in thousands of euros)

Measurement of the provision as of 12/31/2019

56,611 60,055 53,462

Measurement of the provision - assuming discount rate cut by 0.25% Measurement of the provision - assuming discount rate raised by 0.25%

Detail of commitments

12/31/2019

12/31/2018

(in thousands of euros)

Actuarial liabilities for commitments not covered by assets Actuarial liabilities for commitments covered by assets

47,935 33,049 (33,049) 47,935

37,721 28,120 (28,120) 37,721

Market value of hedging assets

DEFICIT

Limitation of assets (overfunded plans)

6,121

5,404

PROVISION RECOGNIZED AS OF DECEMBER 31

54,056

43,125

Change in actuarial liabilities

2019

2018

(in thousands of euros)

ACTUARIAL LIABILITIES AS OF JANUARY 1

65,841

69,159

Service cost for the period Interest expense for the period Benefits paid for the period

7,439 1,713

5,290 1,631

(2,781) 10,962

(7,601) (3,386)

Actuarial losses/(gains) and limitation of assets

288

Newly consolidated companies and change in percentage interest (1) Reclassification into liabilities related to a group of assets held for sale

(3,719)

Translation differences

1,530

460

ACTUARIAL LIABILITIES AS OF DECEMBER 31

80,984

65,841

(1) For 2018, consisting mainly of the actuarial liabilities of the Sigloi and Sigalnor entities.

254 i Rubis 2019 Universal Registration Document