Saab 2013 Annual Report Download - page 105

Assumptions for defined-benefit obligations
Group
Per cent 2013 2012 2011 2010 2009
Significant actuarial assumptions
as of closing day (expressed as
weighted averages)1)
Discount rate, 31 December 4.00 3.00 3.50 4.80 4.00
Future salary increase 3.00 3.00 3.00 3.00 3.00
Future increase in pensions 2.00 2.00 2.00 2.00 2.00
Employee turnover 3.00 3.00 3.00 3.00 5.00
1) Refers to Sweden since essentially all defined-benefit plans are in Sweden
e following assumptions serve as the basis of the valuation of Saab’s
pension liability:
Discount rate: e valuation is based on covered Swedish mortgage bonds
(). Each assumed cash ow is discounted using an interest rate for the
corresponding maturity.
Long-term salary increase assumption: Assumed to be as high as the increase
in the basic income amount. is means that Saab expects the same salary
increases as the national average.
Long-term increase in basic income: Data from Statistics Sweden on current
wage increases in the private sector provide an historical average during the
period – of approximately  per cent above ination.
Long-term rate of inflation: Based on the Riksbank’s ination target of
 per cent.
Mortality: Mortality is the same assumption recommended by the Financial
Supervisory Authority ( :), based on Makeham formulas for men
and women.
Marriage: Marriage is the same assumption recommended by the Financial
Supervisory Authority ( :).
Employee turnover: e likelihood that an individual ends his/her employ-
ment is assumed to be  per cent per year.
Effects of amendments to IAS 19 Employee benefits
e statement of nancial position  has been adjusted for netting of
deferred tax assets and liabilities compared to the summarised statement of
nancial position presented in the annual report of .
e adjusted statement of nancial position and the adjusted income
statement for  are as follows.
Statement of financial position
MSEK
31-12-2012
actual
Adjustment
IAS 19R
31-12-2012
restated
Fixed assets 12,026 -741 11,285
Deferred tax assets 213 - 213
Current assets 17,440 - 17,440
Total assets 29,679 -741 28,938
Equity 14,097 -2,817 11,280
Provision for pension 11 2,863 2,874
Deferred tax liabilities 981 -797 184
Other long-term liabilities 1,696 10 1,706
Current liabilities 12,894 - 12,894
Total liabilities 15,582 2,076 17,658
Total equity and liabilities 29,679 -741 28,938
Equity/assets ratio 47.5% 39.0%
Income statement
MSEK
2012
actual
Adjustment
IAS 19R
2012
restated
EBIT 2,032 18 2,050
Financial net -126 79 -47
Taxes -367 -76 -443
Net income 1,539 21 1,560
EPS before dilution, SEK 14.81 0.19 15.00
EPS after dilution, SEK 14.33 0.19 14.52
Other comprehensive income after tax -107 -300 -407
Net comprehensive income 1,432 -279 1,153
Parent Company’s pension obligations
Funds allocated for pensions according to the balance sheet correspond to
the net present value of existing pension obligations less funds that are
secured by Saab’s pension fund.
MSEK 31-12-2013 31-12-2012
ITP and the book reserve method 81 197
Other pensions 63 50
Other provisions for pensions 75 87
Total 219 334
Of which credit guarantees in PRI Pensionsgaranti 141 268
MSEK 2013 2012
Amount of provision expected to be settled after more
than 12 months 55 182
Long-term incentive programme
In April  Saab’s Annual General Meeting resolved to oer employees the
opportunity to participate in a Global Share Matching Plan. e Board con-
siders it important that Saab’s employees share a long-term interest in the
appreciation of the company’s shares. Employees who participate in the plan
can have up to  per cent of their gross base salary withheld to purchase
Series  shares on the   Stockholm during a twelve-month
period. If the employee retains the purchased shares for three years aer the
investment date and is still employed by the Saab Group, the employee will be
allotted a corresponding number of Series  shares gratuitously.
In April  Saab’s Annual General Meeting resolved to introduce a Per-
formance-Based Plan for senior Executives and key employees entitling them
to - matching shares, depending on the employee category to which they
belong. Up to  employees, including the President, may allocate a maxi-
mum of . per cent of their gross xed salary for the purchase of Saab
Series  shares. In addition to the requirement that the employee remain
employed by Saab aer three years, an additional requirement calls for earn-
ings per share to grow in the range of  to  per cent on average per year dur-
ing the three-year period for allocation of matching shares under the Perfor-
mance Share Plan. e  Annual General Meeting amended the terms of
the Performance Share Plan, as compared to previous years’ programmes, to
allow those eligible for the programme to also participate in Saab’s Share
Matching Plan and entitling Performance Share Plan participants to
-matching shares, depending on employee category. e Board may reduce
the number of shares to be matched if the Board considers it reasonable in
relation to the company’s nancial results and position, conditions on the
stock market and other circumstances.
2009 Share Matching Plan
In April , Saab’s Annual General Meeting resolved to oer a third Share
Matching Plan with terms comparable to the previous years’ plans. Matching
took place on three occasions in  and once in January . e plan is
therefore closed.
NOTE 37, CONT.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2013 101