Urenco Annual Report 2022

Financial statements Notes to the Company Financial Statements continued For the year ended 31 December 2022 15. Retirement benefit obligations continued Movements in the fair value of plan assets 2022 €m 2021 €m As at 1 January 71.0 63.8 Interest income 1.2 1.1 Actuarial (losses)/gains (20.4) 3.1 Contribution by employer 0.5 0.4 Benefits paid to members (1.7) (1.7) Exchange difference (2.9) 4.3 As at 31 December 47.7 71.0 Components of pension cost 2022 €m 2021 €m Interest on pension scheme liabilities (1.1) (1.1) Interest on scheme assets 1.2 1.1 Past service gain - 0.3 Total pension cost recognised in income statement 0.1 0.3 Actuarial gains 2.6 9.9 Total pension movement recognised in the Statement of Comprehensive Income 2.6 9.9 2022 €m 2021 €m Present value of defined benefit obligation (37.4) (63.4) Fair value of plan assets 47.7 71.0 Recognised asset at 31 December 10.3 7.6 The liabilities of the defined benefit pension plan expose the Company to risks of longevity, inflation and discount rate. The related assets expose the Company to market price volatility and the default risk regarding the investments held by the pension fund. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period. The discount rate and the inflation rate have a significant effect on the amounts reported as defined benefit obligations. The effect of a 0.25% change in isolation in certain assumptions as at 31 December 2022 for the Company's retirement benefit schemes would have had the effects shown in the table below. The sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated. (Increase)/decrease in retirement benefit obligations 31/12/22 €m Discount rate Effect of increase in discount rate by +0.25% at 31 December 2022 1.2 Effect of decrease in discount rate by -0.25% at 31 December 2022 (1.3) Inflation rate Effect of increase in inflation rate by +0.25% at 31 December 2022 (1.2) Effect of decrease in inflation rate by -0.25% at 31 December 2022 1.1 Experience adjustments (surplus/deficits) arise where actuarial assumptions made at a previous valuation have not been borne out in practice. Regular contributions to the scheme from the employer for the year beginning 1 January 2023 are expected to be €nil (2022 actual contributions: €0.5 million) reflecting that the scheme was closed to further accruals from 5 April 2017. It is anticipated that no significant future contributions are required to be made unless investment conditions or actuarial assumptions would change in an adverse way. A triennial valuation for the pension scheme was completed as at 5 April 2021 and subsequently rolled forward to 31 December 2022 by a qualified actuary. Urenco closed the UK defined benefit section for further accrual from April 2017 having conducted consultations with employees and their representatives and the pension scheme trustees. In 2008, the Company also introduced a defined contribution scheme for new employees. The total cost of defined contribution arrangements of €1.8 million (2021: €1.5 million) has been fully expensed against profits in the current year. 177 Urenco Annual report and accounts 2022 Financial statements 03