Vilmorin & Cie - Annual report 2017-2018

Financial INFORMATION 5 ANNUAL REPORT Vilmorin & Cie 186 2017-2018 Note 24: Provisions for employee benefits Provisions for employee benefits are analyzed as follows: In millions of euros 06.30.18 06.30.17 Provisions for lump sums paid at retirement 19.6 19.6 Commitments for “work medal” bonuses and other benefits 1.0 1.1 Pension plans and similar schemes 36.8 43.5 Provisions for employee benefits 57.4 64.2 Financial assets - -0.2 Net recorded commitment 57.4 64.0 The evaluation rules applied to this line are described in Note 1 paragraph 16 of the “Accounting methods and principles in IFRS standards.” In accordance with the laws and practices of each country in which it operates, Vilmorin & Cie has obligations with regard to employee benefits: Unfunded pension and other post-retirement benefit obligations mainly concern French companies. Commitments for “work medal” bonuses and other benefits also mainly concern French companies. Commitments with regard to pension plans and similar schemes are the responsibility of the non-French subsidiaries. Taking Vilmorin & Cie as a whole, three countries represent around 85% of the commitments: the United Kingdom, the United States and France. In the United Kingdom there are two types of defined benefit pension plans representing 51% of the group’s commitments. These plans provide for the payment of a lifetime pension as of when the employee retires, the amount of which depends on the seniority and the salary. The plans are funded by the group and managed by a Board of Directors. These plans are no longer available to new employees, and the acquisition of rights has been frozen. In the United States, there is a defined benefit pension plan representing 24% of the group’s commitments. This plan provides for the payment of a lifetime pension as of when the employee retires, the amount of which depends on the seniority and the salary. The plan is funded by the group. This plan was closed off to new employees in 2012. A defined contributions plan also forms part of the provisions. In France, the plan comprising lump sums paid at retirement represents 9% of the group’s commitments. This plan provides for the payment of a lump sum, the amount of which depends on the seniority, the salary and any rights set down in the collective bargaining agreement at the date when retirement is taken. Vilmorin & Cie’s commitments are assessed by independent actuaries. 1- Evolution over the course of the fiscal year The evolution of the current value of obligations with regard to defined contribution schemes and other long-term benefits is as follows: In millions of euros 17-18 16-17 Current value of obligations at opening of the fiscal year 221.0 226.0 Cost of services rendered for the year (net of contributions) 3.7 5.0 Financial cost 5.8 5.9 Participants’ contributions - - Welfare services paid out -9.8 -9.5 Cost of past services recorded 0.4 0.5 Effect of liquidation / reduction of future services - - Currency translations and others -3.0 -8.2 Variations in scope -0.1 - Revaluations -1.0 1.3 > Changes in demographic hypotheses -0.3 -3.9 > Changes in financial hypotheses -0.9 2.3 > Adjustments linked to experience 0.2 2.9 Current value of obligations at close of the fiscal year (a) 217.0 221.0 Evolution of the fair value of the assets of defined contribution schemes is as follows: In millions of euros 17-18 16-17 Fair value of forward assets at opening of the fiscal year 157.0 150.2 Financial charges 4.4 4.2 Expected returns on forward assets 4.7 13.3 Employers’ contributions 3.3 3.0 Participants’ contributions - - Welfare services paid out -7.7 -7.8 Effect of liquidation / reduction of future services - - Variations in scope - - Currency translations and others -2.1 -5.9 Fair value of forward assets at close of the fiscal year (b) 159.6 157.0 5.1. Consolidated Financial Statements