SECTION 1 -

- Length‐of‐service awards in Italy:
New Services: Pro forma Financial Statements and Notes
December, 31, 2009
o These are lump‐sum payments made to employees when they retire, resign or are laid off. They are determined by
reference to the employee's years of service and final salary.
o The related obligation is covered by a provision.
- Pensions: the main defined benefit pension plans are for employees in United Kingdom (42% of the obligation at
December 31, 2009), in France and the Worldwide Structures (18% of the obligation at December 31, 2009), in Belgium
(17% of the obligation at December 31, 2009) and in Italy (15% of the obligation at December 31, 2009). Pension
benefit obligations are determined by reference to employees' years of service and final salary. They are funded by
payments to external organizations that are legally separate from the New Services Group.
B. Actuarial assumptions
Actuarial valuations are based on a certain number of long‐term parameters supplied by the Group, which are reviewed each
year.
2009 France
United
Kingdom
Belgium Italy
Retirement age 65 years 65 years 65 years 65 years 65 years 55-65 years
Rate of futur salary increase 3,0% 3,0% 3,0% 2,5%-3,5% 3%-4% 2%-10%
Payroll tax rate 46% 13% 36% 29% 46% 9%-45%
Discount rate 5,00% 5,60% 5,00% 5,00% 5,00% 4% - 8,68%
Expected return on 2009 plan assets 2,20%-4,5% 5,5% 4,5% N/A 4,5% N/A
Expected return on 2010 plan assets 2,20%-4,5% 5,5% 4,5% N/A 4,5% N/A
2008
France
United
Kingdom
Belgium Italy
Retirement age 65 years 65 years 65 years 65 years 65 years 55-65 years
Rate of futur salary increase 3,0% 3,0% 3,0% 2,5%-3,5% 3%-4% 2%-10%
Payroll tax rate 46% 13% 36% 29% 46% 9%-45%
Discount rate 5,50% 5,90% 5,50% 5,50% 5,50% 4% - 8,68%
Expected return on 2008 plan assets 2,20%-4,5% 5,5% 4,5% N/A 4,5% N/A
Expected return on 2009 plan assets 2,20%-4,5% 5,5% 4,5% N/A 4,5% N/A
2007 France
United
Kingdom
Rest of Europe
Rest of Europe
Rest of Europe
Belgium Italy
Worldwide
Structures
Worldwide
Structures
Worldwide
Structures
Rest of the
world
Rest of the
world
Rest of the
world
Retirement age 65 years 65 years 65 years 65 years 65 years 55-65 years
Rate of futur salary increase 3,0% 3,0% 3,0% 2,0% 3%-4% 2%-10%
Payroll tax rate 46% 13% 36% 29% 46% 9%-45%
Discount rate 5%-5,25% 5,8% 5,0% 5,0% 5,0% 4% - 8,68%
Expected return on 2007 plan assets 2,20%-4,5% 5,5% 4,5% N/A 4,5% N/A
Expected return on 2008 plan assets 2,20%-4,5% 5,5% 4,5% N/A 4,5% N/A
The assumptions concerning the expected return on plan assets and the discount rate applied to calculate the present value of
benefit obligations were determined based on the recommendations of independent experts. The discount rate was based on an
analysis of investment grade corporate bond yields in each region. The calculation method was designed to obtain a discount rate
that was appropriate in light of the timing of cash flows under the plan.
The New Services Group’s pension obligations are funded under insured plans or by external funds. Plan assets therefore consist
mainly of the classes of assets held in insurers’ general portfolios managed according to conservative investment strategies. As a
result, the expected long‐term return on plan assets is estimated on the basis of the guaranteed yield offered by the insurance
companies, ranging from 3.00% to 3.25% depending on the country, plus a spread of 100 to 125 basis points. This method takes
into account the techniques used by insurance companies to smooth investment yields and ensures that yield assumptions are
reasonable (i.e. below the rates of AA‐rated corporate bonds).
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