Contents

Financial position – resultsNotes to the consolidated financial statements 4Analysis of net expense(€ millions)Pension benefitobligations2012 2011Other long-termbenefitsTotalPension benefitobligationsOther long-termbenefitsService cost 12 – 12 11 – 11Interest cost 54 – 54 55 – 55Expected return on plan assets (55) – (55) (55) – (55)Past service cost – – – (19) – (19)Amortisation of actuarial (gains) and losses – – – – – –Impact of settlements and curtailments (1) – (1) (6) – (6)TOTAL NET EXPENSE 10 – 10 (14) – (14)TotalAssumptions usedTo determine the benefit obligation at 31 DecemberPension benefitobligations2012 2011Other long-termbenefitsPension benefitobligationsOther long-termbenefitsDiscount rate including inflation 3.98% 2.83% 4.60% 4.27%Expected rate of increase in salaries 3.39% 2.00% 3.48% 1.95%Expected rate of return on plan assets 4.04% – 4.71% –Rate of increase in pension benefits 2.63% – 2.88% –Rate of inflation of medical costs 7.75% – 7.60% –To determine the expense for the yearDiscount rate including inflation 4.60% 4.27% 5.23% 4.56%Expected rate of increase in salaries 3.48% 1.95% 3.86% 2.07%Expected rate of return on plan assets 4.71% – 5.35% –Rate of increase in pension benefits 2.88% – 2.34% –Rate of inflation of medical costs 7.60% – 6.80% –Breakdown of assumptions used by geographical area2012 UK Other EU countries Switzerland Norway North AmericaDiscount rate including inflation 4.31% 3.00% 2.00% 3.50% 4.00%Expected rate of increase in salaries 4.13% 2.55% 1.50% 3.50% –Expected rate of return on plan assets 4.31% 3.00% 2.00% 3.50% 4.00%Rate of increase in pension benefits 2.67% 2.00% – – 2.00%2011 UK Other EU countries Switzerland Norway North AmericaDiscount rate including inflation 4.75% 4.75% 2.75% 2.75% 4.50%Expected rate of increase in salaries 4.09% 2.87% 1.50% 4.00% –Expected rate of return on plan assets 4.56% 4.38% 3.63% 5.40% 8.00%Rate of increase in pension benefits 2.95% 2.00% – – 2.00%Sequana | 2012 Document de référence (English version) | 129