Arla Foods Annual Report 2020
Management Review
Our Strategy
Our Brands and Commercial Segments Our Responsibility Our Governance Our Performance Review Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
Funding
4.7 PENSION LIABILITIES
Table 4.7.b Development in pension liabilities
(EURM)
Present value of liability at 1 January
Current service cost
Interest cost
2020
2019
Maturity of pension liability, at 31 December 2020
(EURM)
600
1,708
4
1,485
3
500
30
40
Actuarial gains and losses from changes in financial assumptions (OCI)
153
177
Actuarial gains and losses from changes in demographic assumptions (OCI)
-17
3
400
Benefits paid
-63
-70
Exchange rate adjustment
-70
70
300
Present value of pension liability at 31 December
1,745
1,708
200
Maturity of pension liability, at 31 December 2019
(EURM)
600
500
400
300
200
Table 4.7.c Development in fair value of plan assets
(EURM)
2020
2019
100
100
0
Fair value of plan assets at 1 January
1,475
Interest income
28
1,265
36
0-1Y 1-5Y 5-10Y 10-20Y 20-30Y 30-40Y >40Y
0-1Y
1-5Y 5-10Y 10-20Y 20-30Y 30-40Y >40Y
Return on plan assets, excluding amounts included in net interest
on the net defined benefit liability
UK
Sweden
Other
141
130
Contributions to plans
26
27
Benefits paid
-53
-60
Exchange rate adjustments
-79
77
Fair value of plan assets at 31 December
1,538
1,475
The Group expects to contribute EUR 15 million to the plan assets in 2021 and
EUR 59 million in 2022-2025.
Table 4.7.d Sensitivity of pension liabilities to key assumptions
(EURM)
Impact on pension liabilities at 31 December
Actual return on plan assets:
Calculated interest income
Return excluding calculated interest
Actual return
Discount rate +/- 10bps
Expected salary increases +/- 10bps
Life expectancy +/- 1 year
28
141
36
Inflation +/- 10 bps
130
169
166
2020
2020
2019
2019
+
+
-28
28
-27
27
3
-3
3
-3
84
-84
77
-77
17
-17
18
-17
109 ARLA FOODS ANNUAL REPORT 2020View entire presentation