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Notes to the consolidated financial statements continued20. Retirement benefit obligations continuedThe major categories of plan assets at the balance sheet date are as follows:2009 2008€ m € mEquities 206 248Bonds 245 280Property 67 75Other assets, including insurance policies 100 120Fair value of plan assets 618 723The plans do not invest directly in property occupied by or in financial securities issued by the Group.The expected rate of return on plan assets during the coming year is 5.1 per cent (2008: 5.3 per cent). This expected rate of return was derivedas a weighted average of the long-term expected rates of return on each of the major asset classes at the measurement date taking account ofgovernment bond yields available at the balance sheet date and investment market expectations for future returns in excess of government bondyields for each asset class. The actual return on plan assets was a loss of € 141 million (2008: loss of € 14 million).The amounts recognised in the income statement in respect of such plans are as follows:2009 2008€ m € mCurrent service cost 31 29Interest cost 29 26Expected return on plan assets (37) (31)Net actuarial losses recognised in the year 91 18Adjustment to recognise the effect of asset limit (74) (7)Gains on curtailment and/or settlement (1) (5)39 302009 2008€ m € mExpense charged in:Cost of sales 18 12Net operating expenses 21 1839 30Total pension costs are included in employee benefits expense (note 25).Changes in the net liabilities recognised in the balance sheet are as follows:2009 2008€ m € mBalance at 1 April of prior year (42) (103)Exchange adjustments (2) 1Total expense charged to the income statement (39) (30)Contributions paid 44 90Balance at 31 March (39) (42)The Group expects to contribute € 45 million to such plans in the coming twelve months.88 Richemont Annual Report and Accounts 2009Consolidated financial statements
20. Retirement benefit obligations continuedThe principal actuarial assumptions used for accounting purposes reflected prevailing market conditions in each of the countries in which theGroup operates and were as follows:2009 Weighted 2008 WeightedRange average Range averageDiscount rate 1.8% to 7.0% 4.3% 1.4% to 6.6% 4.5%Expected return on plan assets 3.2% to 6.0% 5.1% 2.0% to 6.1% 5.3%Future salary increases 1.8% to 4.9% 2.6% 1.4% to 6.0% 2.8%Future pension increases 2.2% to 3.3% 3.0% 2.3% to 3.4% 3.1%Assumptions used to determine the benefit expense and the end-of-year benefit obligations for the defined benefit plans varied within the rangesshown above. The weighted average rate for each assumption used to measure the benefit obligation is also shown. The assumptions used todetermine end-of-year benefit obligations are also used to calculate the following year’s cost.The Group’s major benefit plans are in Switzerland, the UK and Germany.In Switzerland, the Group operates a foundation covering the majority of employees in Switzerland, which holds assets separately to the Group.The foundation operates as a defined contribution plan with the Group’s annual contribution being a fixed percentage of salary. Under IAS 19,Employee Benefits, the foundation is accounted for as a defined benefit plan on account of underlying benefit guarantees. For 2009, the expenserecognised in the Group’s consolidated income statement in respect of the foundation is equal to the Group’s contribution.In the UK, the Group operates a defined contribution plan for new hires and a defined benefit plan, which is closed to new entrants. For thedefined benefit plan, benefits are related to service and final salary. The plan is funded through a trustee-administered fund, which is held separatelyto the Group, with a funding target to maintain assets equal to the value of the accrued benefits based on projected salaries. Contributions tothe defined contribution arrangements are in addition and charged directly to the income statement.In January 2008, a new plan was set up in Germany. Although this plan is largely defined contribution in nature it is accounted for under IAS 19 asa defined benefit plan due to some underlying guarantees applying. The plan is available to new hires from January 2008 and existing employeeswho chose to move from the old plan. The old plan is funded through a contractual trust agreement.Benefits under arrangements other than those detailed above are generally related to service and either salary or grade. They are funded in alllocations where this is consistent with local practice; otherwise the liability is recognised in the balance sheet.The Group does not have any significant liabilities in respect of any other post-employment benefits, including post-retirement healthcare liabilities.Defined benefit pension plans for the current and previous periods:2009 2008 2007 2006 2005€ m € m € m € m € mPresent value of defined benefit obligation (673) (673) (663) (632) (562)Fair value of plan assets 618 723 642 590 501Surplus/(deficit) in plan (55) 50 (21) (42) (61)Experience adjustments on plan liabilities 53 44 9 (30) (20)Experience adjustments on plan assets (178) (45) 1 46 9Richemont Annual Report and Accounts 2009 89Consolidated financial statements
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Financial and operating highlights
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BUSINESS DEVELOPMENTWhilst the year
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JewelleryMaisonsKey resultsSales (
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Exceptional client service remains
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SpecialistWatchmakersKey resultsSal
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Established 1845Altenberger Strasse
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Established 1860Piazza San Giovanni
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Established 183050 chemin de la Ch
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Established 20078 chemin de Blandon
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Established 1906Hellgrundweg 100Ham
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OtherBusinessesKey resultsSales (
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Established 19837 rue de MoussyPari
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Financial reviewRICHARD LEPEU, GROU
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Sales and operating results by busi
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Sales by distribution channelin €
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Summarised balance sheetin € mill
Page 40 and 41: Corporate responsibilityRichemont h
Page 42 and 43: Corporate governanceGENERAL PRINCIP
Page 44 and 45: on page 103. The operating expense
Page 46 and 47: Board of directors of Compagnie Fin
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Page 50 and 51: Group Management CommitteeJohann Ru
Page 52 and 53: Continued from page 47The executive
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Page 58 and 59: Consolidated balance sheetat 31 Mar
Page 60 and 61: Consolidated statement of changes i
Page 62 and 63: Notes to the consolidated financial
Page 110 and 111: Company financial statementsCompagn
Page 112 and 113: Compagnie Financière Richemont SAN
Page 114 and 115: Compagnie Financière Richemont SAR
Page 116 and 117: Five year record continuedConsolida
Page 118 and 119: Notice of meetingThe Annual General
Page 120: www.richemont.com
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