NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
HEINEKEN N.V. ANNUAL REPORT 20( 8
26. Employee benefits
Principal actuarial assumptions as at the balance sheet date
The defined benefit plans in the Netherlands and the UK cover 88.6 per cent of the present value of the plan
assets, 83.5 per cent of the present value of the defined benefit obligations and 54.3 per cent of the deficit
in the plans as per 31 December 2008. For the Netherlands and the UK the following actuarial assumptions
apply as per 31 December 2008:
The Netherlands
UK
2008
2007
2008
2007
Discount rate as at 31 December
5.6
5.5
6.7
-
Expected return on plan assets as at 1 January
5.9
5.5
5.7
Future salary increases
3
3
4
Future pension increases
1.5
2
2.8
Medical cost trend rate
-
7
For the other defined benefit plans the following actuarial assumptions apply as per 31 December 2008:
Other Western,
Central and
Eastern Europe
The Americas
Africa and the
Middle East
Asia Pacific
2008
2007
2008
2007
2008
2007
2008
2007
Discount rate as at 31 December 4.5-6.2
4.5-5.7
5.5-6.5
5.5-6.5
12
4.6-15
2.5-12
3.5-9.5
Expected return on plan assets
as at 1 January
4.5-7
1.5-6.6
6.5
6.5
4.6
4.6
2.5-8
3.5-8
Future salary increases
2.9-12
2.5-9
0.5-5.5
0.5-5.5
11
3-14
3-10
3-6.5
Future pension increases
1.5-5
1.5-2.5
3.5
3.5
-
2
8
6.5
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 6.0 per cent (2007: 5.3 per cent), which is based on
the asset mix and the expected rate of return on each major asset class, as managed by the pension funds.
Assumed healthcare cost trend rates have nil effect on the amounts recognised in the income statement.
A one percentage point change in assumed healthcare cost trend rates would not have any effect on the
income statement neither on the balance sheet as per 31 December 2008.
The Group expects the 2009 contributions to be paid for the defined benefit plans to be in line with 2008
and 2007, excluding the impact of acquisitions.
Historical information
In millions of EUR
2008
2007
2006
2005
Present value of the defined benefit obligation
4,963
2,858
2,984
3,061
Fair value of plan assets
(4,231)
(2,535)
(2,397)
(2,268)
Deficit in the plan
732
323
587
793
Experience adjustments arising on plan liabilities, losses/(gains)
71
(4)
(159)
Experience adjustments arising on plan assets, (losses)/gains
(817)
16
9