DSV Annual Report 2022

63 DSV Annual Report 2022 Consolidated financial statements 2022 = III 3.7 Pensions and other post-employment benefit plans Accounting policies Pension obligations relating to defined contribution plans, under which the Group pays regular pension contributions to independent pension funds, are recognised in the income statement for the period in which they are earned. Contributions payable are recognised in the balance sheet under other current liabilities. In regards to defined benefit plans, an actuarial valuation of the present value of future benefits payable under the plan is made once a year. The present value is calculated based on various assumptions, including the future development in wage/salary levels, interest rates, inflation and mortality. The present value is only calculated for benefits to which the employees have become entitled during their employment with the Group. The actuarial calculation of the present value less the fair value of assets under the plan is recognised in the balance sheet under pensions and other post-employment benefit plans. Pen- sion costs for the year are recognised in the income statement based on actuarial estimates and the financial outlook at the beginning of the year. Differences between the calculated development in pension plan assets and liabilities and the realised values are recognised in other comprehensive income as actuarial gains or losses. Changes in benefits payable for employees' past services to the company result in an adjustment of the actuarial calculation of the present value, which is classified as past service costs. Past service costs are charged to the income statement immediately if the employees have already earned the right to the adjusted benefits. Otherwise, they will be recognised in the income statement over the period in which the employees earn the right to the adjusted benefits. Management judgements and estimates In determining pension obligations, management makes use of valuations from external and independent actuaries as basis for the estimates ap- plied. The actuarial assumptions used in the valuations vary from country to country owing to national, economic and social conditions. Pension obligations Pension obligations (DKKm) Present value of defined benefit plans Fair value of pension plan assets Pension obligations, net Defined benefit pension obligations Development in the present value of defined benefit pension obligations 2022 2021 is specified as follows: 4,112 5,693 Defined benefit pension 2,929 4,785 obligations (DKKm) 1,183 908 Obligations at 1 January Of these obligations, DKK 856 million relates to unfunded pension obliga- tions (2021: DKK 1,032 million) and DKK 327 million relates to partly funded obligations (2021: DKK 124 million). The latter is primarily due to the Swiss plans being overfunded. Total pension costs for the year In 2022, net costs of DKK 848 million relating to the Group's pension plans were recognised in the income statement (2021: DKK 658 million) and specify as follows: Current service cost 2022 2021 5,693 4,218 135 100 Past service cost from plan amendments, curtailments and gains/losses on settlements Calculated interest on obligations 9 (26) 75 56 Actuarial gains/losses arising from changes in financial assumptions (1,283) (186) Actuarial gains/losses arising from changes in demographic assumptions (23) (63) Pension cost 2022 (DKKm) Staff costs Defined contribution plans Defined Actuarial gains/losses arising from experience adjustments 39 benefit Payments from the plan (521) plans Total Additions from business combinations (8) (1,211) 2,667 745 84 829 Currency translation (12) 146 Financial expenses Total costs recognised 19 19 Obligations at 31 December 4,112 5,693 745 103 848 The expected average duration of the obligations is 14 years. Pension cost 2021 (DKKm) Staff costs Defined Defined contribution plans benefit Expected maturity of plans Total pension obligations (DKKm) 2022 2021 567 74 641 0-1 year 501 206 Financial expenses Total costs recognised 17 17 1-5 years 933 747 567 91 658 > 5 years 2,678 4,740 Total obligations recognised 4,112 5,693

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