Page 84 - Annual Report KELAG Group 2018

to secure a return, stability, profitability and sustainability for the long term. Valida Pension AG is
a wholly owned subsidiary of Valida Holding AG. KELAG discusses and consults with Valida
Pension AG at regular intervals regarding the general investment strategy. The investment and
risk management at Valida Pension AG is geared towards compliance with the laws governing
pension funds and the related regulatory requirements of the financial market supervisory
authorities.

The defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate
risk and market (investment) risk.

THE EXPENSE FOR PROVISIONS FOR SEVERANCE PAYMENTS CAN
BE BROKEN DOWN AS FOLLOWS
Service cost 0.5 0.9
Interest expenses 0.7 0.8
SEVERANCE EXPENSES RECOGNISED IN THE INCOME STATEMENT 1.2 1.7
Development of the provision
Provision recognised as of 01/01 73.9 77.9
Net expense recognised through profit or loss 1.2 1.7
Change in the fully recognised remeasurement of net liability from
defined benefit plans (remeasurements)
thereof demographic adjustments 0.1 0.0
thereof actuarial adjustments 4.4 -0.4
thereof experience adjustments 0.9 -1.0
Severance payments -4.2 -4.2
PROVISION RECOGNISED AS OF 31/12 76.5 73.9