Notes to the consolidated financial statements
110 Financial statements
26. Employee benefits
Movements in the present value of plan assets
In millions of EUR
2007
2006
Fair value of plan assets as at 1 January
2,397
2,268
Effect of movements in exchange rates
(3)
(3)
Contributions paid into the plan
91
99
Benefits paid
(98)
(97)
Expected return on plan assets
129
118
Actuarial gains
19
12
Fair value of plan assets as at 31 December
2,535
2,397
Actual return on plan assets
148
Expense recognised in the income statement
In millions of EUR
2007
2006
Current service costs
72
84
Interest on obligation
134
125
Expected return on plan assets
(129)
(118)
Actuarial gains and losses recognised
2
1
Past service costs
1
2
Effect of any curtailment or settlement
4
6
84 100
Principal actuarial assumptions as at the balance sheet date
Western and Central Africa and the Asia
and Eastern Europe Americas Middle East Pacific
2007 2006 2007 2006 2007 2006 2007 2006
Discount rate as at
31 December
3.5-5.7
2.5-6
5.5-6.5
5.5-6.5
4.6-15
4.5-15
3.5-9.5
3.5-13
Expected return on plan
assets as at 1 January
1.5-6.6
3.5-6.6
6.5
6.5
4.6
6.5
3.5-8
3.5-11
Future salary increases
2-9
1.5-8
0.5-5.5
0.5-5
3-14
3-14
3-6.5
3-8
Future pension increases
1-2.5
1-2.5
3.5
3.5
2
2
6.5
8
Medical cost trend rate
1.5
1.5
5
5
Assumptions regarding future mortality rates are based on published statistics and mortality tables.
The overall expected long-term rate of return on assets is 5.3% (2006: 5.9%).
Assumed healthcare cost trend rates have a significant effect on the amounts recognised in profit or loss.
A one per centage point change in assumed healthcare cost trend rates would have the following effects:
1 percentage 1 percentage
In millions of EUR point increase point decrease
Effect on the aggregate service and interest costs 9 (9)
Effect on defined benefit obligation 142 (142)
The Group expects the 2008 contributions to be paid for the defined benefit plans to be in line with 2007
and 2006, excluding the impact of acquisitions.
Heineken N.V. Annual Report 2007
