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20. Pension obligations

The Group has one defined benefit pension plan in India, including the whole personnel of the Indian subsidiary. The pension plan constitute the obligatory pension and termination benefits for the employees, and the amount of the plan benefit is based on final salary and number of years in service.



EUR 1,000 2018 2017



Defined benefit liability in the balance sheet:
Present value of funded obligations 742 859
Fair value of plan assets (-)

Net liability (+) / net asset (-) in the balance sheet 742 859



Recociliation of the changes in balance sheet

Net liability (+) / net asset (-) in the balance sheet in the beginning of the period 859 930
Pension expense recognised in profit and loss 166 196
Remeasurement items recognised in other comprehensive income 5 -105
Translation differences -287 -163
Net liability (+) / net asset (-) in the balance sheet at the end of the period 742 859



Defined benefit expense in profit and loss
Current service cost 115 136
Interest income (-) and expense (+), net 51 60
Pension expense recognised in profit and loss (note 5) 166 196



Change in the defined benefit obligation:
Defined benefit obligation in the beginning of the period 865 988
Current service cost 106 136
Interest cost 47 55
Remeasurement items:

Gains (-) / losses (+) arising from changes in demographical assumptions

Actuarial gains (-) / losses (+) arising from changes in financial assumptions -6 -6
Gains (-) / losses (+) arising from experience adjustments 11 -97
Translation differences -34 -65
Benefits paid (-) -246 -147
Defined benefit obligation at the end of the period 743 865



Change in plan assets:
Plan assets in the beginning of the period
57
Interest income
4
Remeasurement items:

Return on plan assets excluding amounts included in interest income (+/-)
-3
Translation differences
-4
Payments from the plan: 246 92
Benefits paid (-) -246 -147
Plan assets at the end of the period








2018 2017



Actuarial assumptions at the reporting date % %
Discount rate 7.2 6.9
Future salary increases, first year 8.0 8.0
Future salary increases, thereafter 8.0 8.0



Assumed normal retirement age is 60 years in India. The turnover of the employees is assumed to decline evenly in line with the growing age, being 1 % for over 55 year olds and 15 % for under 30 year olds. Assumptions concerning mortality are made in accordance with the actuary's instructions and they are based on statistics and experience.


There is no information available on plan assets because they are commonly invested by the incurance company.



Sensitivity analysis




The sensitivity analysed below is calculated all other factors remaining unchanged.


2018




Change in discount rate, percentage points + 1% -1%
Impact on the defined benefit obligation, EUR 1,000 -18 21



Change in future salary increases, percentage points + 1% -1%
Impact on the defined benefit obligation, EUR 1,000 20 -18






2017




Change in discount rate, percentage points + 1% + 1%
Impact on the defined benefit obligation, EUR 1,000 -26 16



Change in future salary increases, percentage points + 1% + 1%
Impact on the defined benefit obligation, EUR 1,000 15 -25