ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
E CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 13
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13 RETIREMENT BENEFIT OBLIGATIONS AND SIMILAR OBLIGATIONS - CONTINUED
The amounts recognized in the balance sheet and the movements in the net defined benefit obligation over
the year are as follows.
Actuarial assumptions
2021
2020
The following were the key actuarial assumptions at the reporting date.
2021
2020
Change in present value of defined benefit plans
Present value of defined benefit plans at 1 January
DKKm
DKKm
530
537
Key assumptions for the most significant plans
%
%
Discount rate
1.00-1.80
Inflation rate
Pay rate increase
Pension increase
Age-weighted employee resignation rate
Expected return on plan assets
Assumptions regarding future mortality are set based on actuarial advice in accordance with published
statistics and experience in each country.
2.10-3.30
0-2.50
2.10-5.00
0-8
1.80
0.70-1.70
1.75-2.85
Effect of foreign exchange differences
Pension expenses
20
(16)
7
7
Interest expenses relating to the obligations
7
7
0.00-2.50
Experience adjustments
(7)
4
1.75-5.00
Adjustments relating to financial assumptions
4
9
0-8
Adjustments relating to demographic assumptions
(3)
1.70
Benefits paid
(20)
(19)
Employee contributions
1
1
Present value of defined benefit plans at 31 December
539
530
Sensitivity analysis
The most significant assumptions used in the calculation of the obligation for defined benefit plans are
discount rate and inflation rate. An increase in the discount rate of 0.25 of a percentage point would result in
a decrease in the obligation of approximately DKK 21 million, before tax (DKK 22 million in 2020) and vice
versa. An increase in the inflation rate of 0.25 of a percentage point would result in an increase in the
obligation of approximately DKK 8 million, before tax (DKK 8 million in 2020) and vice versa. The sensitivity
analysis indicates how a change in the individual assumptions would change the obligation. However, the
assumptions will most likely be correlated and consequently result in a different obligation.
Change in fair value of plan assets
Fair value of plan assets at 1 January
Effect of foreign exchange differences
Interest income on plan assets
Experience adjustments
Administration fees
Contributions
Benefits paid
Employee contributions
Fair value of plan assets at 31 December
Fair value of plan assets
Shares
Bonds
Property
Insurance contracts
Other assets
Total
2021
DKKm
2020
DKKm
61
56
40
38
16
17
152
147
16
17
285
275
Shares, bonds, property and other assets are measured at fair value based on quoted prices in an active
market. Insurance contracts are not based on quoted prices in an active market.
2021
2020
DKKm
DKKM
275
275
18
(13)
5
5
(7)
12
(1)
(1)
8
7
(14)
(11)
1
1
285
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