BOC Report and accounts 2005 - Alle jaarverslagen

More documents

Recommendations

Info

110 The BOC Group plc Annual report and accounts 2005 Notes to the financial statements 8. Pensions and other retirement benefits continued The weighted-average assumptions used to determine the benefit obligation are as follows: Europe Americas Africa Asia/Pacific At 30 September 2005 Discount rate 4.9% 5.0% 8.5% 6.0% Expected return on all plan assets 7.0% 6.8% 9.9% 7.0% Rate of compensation increase 4.2% 3.5% 5.5% 3.5% At 30 September 2004 Discount rate 5.75% 6.1% 10.0% 6.1% Expected return on all plan assets 7.75% 8.0% 12.0% 7.1% Rate of compensation increase 4.5% 3.75% 7.5% 3.5% The weighted-average assumptions used to determine the net benefit cost are as follows: Europe Americas Africa Asia/Pacific At 30 September 2005 Discount rate 5.75% 6.1% 10.0% 6.1% Expected return on all plan assets 7.75% 8.0% 12.0% 7.1% Rate of compensation increase 4.5% 3.75% 7.5% 3.5% At 30 September 2004 Discount rate 5.2% 5.8% 10.0% 6.2% Expected return on all plan assets 7.6% 8.0% 12.0% 7.6% Rate of compensation increase 4.0% 3.75% 7.5% 3.5% The Group presently expects its contributions to its pension plans and post retirement medical plans to be up to 20 per cent higher in 2006 than the amounts contributed in 2005. The following benefit payments, which reflect future service, as appropriate, are expected to be paid: Total pension Other Europe Americas Africa Asia/Pacific benefits benefits 2 £ million £ million £ million £ million £ million £ million Year ending 30 September 2006 65.0 12.8 4.2 10.6 92.6 2.9 2007 68.2 12.1 4.3 11.4 96.0 2.8 2008 71.4 12.5 4.5 12.2 100.6 2.8 2009 75.4 12.4 4.7 13.0 105.5 2.7 2010 79.6 12.1 4.9 14.2 110.8 2.7 2011 – 2015 471.4 58.9 28.3 87.9 646.5 13.6 For the post retirement medical benefits plan at 30 September 2005, the initial health care cost trend rates for valuing the medical benefits and drug benefits post age 65 were 10.0 per cent (2004: 9.0 per cent) and 2.5 per cent (2004: 3.2 per cent) respectively.The rates for valuing post age 65 medical benefits are assumed to reduce gradually to 4.5 per cent in 2013 (2004: 4.5 per cent in 2011).The rates for valuing drug benefits post age 65 are assumed to reduce gradually to 0.55 per cent in 2013 (2004: 0.65 per cent in 2011). For valuing pre age 65 medical and drug benefits, a blended health care trend rate of 10.0 per cent was used for 30 September 2005 (2004: 9.0 per cent).This blended rate was assumed to reduce gradually to 4.5 per cent in 2013 (2004: 4.5 per cent in 2011). Pensionable benefits Other benefits 2 2005 2004 2003 2005 2004 2003 £ million £ million £ million £ million £ million £ million Service cost net of employees’ contributions 65.2 67.4 53.0 1.5 1.7 1.8 Interest cost on projected benefits obligation 130.4 114.0 108.7 2.5 2.6 3.1 Expected return on assets (165.7) (157.4) (166.2) – – – Amortisation of net transition asset (1.5) (2.9) (14.8) – – – Amortisation of prior service cost/(credit) 3 2.4 3.1 46.4 (0.3) (0.5) (0.5) Amortisation of net loss/(gain) 18.9 14.8 (1.6) 0.2 0.3 0.3 Cost of special termination benefits – 0.7 0.9 – – – Curtailment/settlement (0.6) 0.6 – – (0.4) – Net periodic pension cost 49.1 40.3 26.4 3.9 3.7 4.7 2. Other benefits relate to post retirement medical benefits. 3. In 2003 the amortisation of pension prior service cost includes £43.2 million in respect of a settlement of litigation from which the company will derive no future economic benefit. It is estimated that a one per cent change in the weighted average health care costs trend would have the following effects on the accumulated benefit obligation and net periodic pension cost at 30 September 2005: One percentage point Accumulated benefit obligation 3.8 (3.6) Net periodic pension cost 0.5 (0.5) Increase Decrease
Notes to the financial statements 111 9. Dividends Per share 2005 2004 2003 2005 2004 2003 pence pence pence £ million £ million £ million Ordinary First interim 15.9 15.5 15.5 78.6 76.3 76.4 Second interim 25.3 24.5 23.5 125.5 121.0 115.7 41.2 40.0 39.0 204.1 197.3 192.1 10. Earnings per share Basic earnings per share are calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of shares in issue during the year. For diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all potential dilutive shares. The company has only one category of potential dilutive shares: those share options granted to employees where the exercise price is less than the average market price of the company’s shares during the year and where any performance conditions have been met at the balance sheet date. Adjusted earnings per share (excluding exceptional items) are presented in order to show the underlying earnings performance of the Group. 2005 2004 2003 i) Earnings £ million £ million £ million Amounts used in computing the earnings per share Earnings attributable to Ordinary shareholders for the financial year 367.0 264.0 219.1 Adjustment for exceptional items 1 (32.8) 47.5 41.6 Adjusted earnings 334.2 311.5 260.7 1. This comprises the exceptional items before interest of £87.9 million (2004: £(92.0) million, 2003: £(67.0) million) adjusted for the impact of tax of £(28.4) million (2004: £44.5 million, 2003: £25.0 million) and minority interests of £(26.7) million (2004: £nil, 2003: £0.4 million). 2005 2004 2003 ii) Average number of 25p Ordinary shares million million million Average issued share capital 500.4 498.2 497.5 Less: Average own shares held in trust 5.4 5.2 5.0 Basic 495.0 493.0 492.5 Add: Dilutive share options 1.6 0.8 0.2 Diluted 496.6 493.8 492.7 11. Fixed assets – intangible assets a) Group summary Other Goodwill intangibles Total £ million £ million £ million Gross book value At 1 October 2004 212.8 4.8 217.6 Exchange adjustment 3.9 0.2 4.1 Acquired during the year – 0.6 0.6 Adjustment relating to prior year acquisition (0.6) – (0.6) Acquisition of businesses 16.8 1.3 18.1 Disposed of during the year (28.7) (0.1) (28.8) At 30 September 2005 204.2 6.8 211.0 Amortisation At 1 October 2004 41.2 1.5 42.7 Exchange adjustment 1.6 0.1 1.7 Provided during the year 12.6 0.4 13.0 Impairment 14.8 0.2 15.0 Disposed of during the year (4.0) – (4.0) At 30 September 2005 66.2 2.2 68.4 Net book value At 1 October 2004 171.6 3.3 174.9 At 30 September 2005 138.0 4.6 142.6 The adjustment relating to prior year acquisition reflects the finalisation of the fair value of the consideration for a business acquired in 2003.
Page 1 and 2:
BOC Report and accounts 2005
Page 3 and 4:
01 The BOC Group plc is a public li
Page 5 and 6:
Financial highlights 03 Dividends p
Page 7 and 8:
Chairman’s statement 05 Conduct a
Page 9 and 10:
Chief executive’s review 07 Indus
Page 11 and 12:
Board of directors 09 08 09 10 11 1
Page 13 and 14:
Executive management board 11 09 10
Page 15 and 16:
Group five year record 13 Capital e
Page 17 and 18:
Group profile 15 Analysis of result
Page 19 and 20:
Group profile 17 Principal industri
Page 21 and 22:
Group profile 19 In China, signific
Page 23 and 24:
Group profile 21 Sales opportunitie
Page 25 and 26:
Employees 23 At 30 September 2005 t
Page 27 and 28:
Employees 25 Retirement benefit pla
Page 29 and 30:
Social, environmental and ethical p
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Research, development and informati
Page 41 and 42:
Risk factors 39 BOC relies on devel
Page 43 and 44:
Operating review 41 Exceptional ite
Page 45 and 46:
Operating review (comparing 2005 wi
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Financial review 55 Net debt/equity
Page 59 and 60:
Financial review 57 The balance she
Page 61 and 62: Financial review 59 Manganese litig
Page 63 and 64: Financial review 61 Current asset p
Page 65 and 66: Financial review 63 Average exchang
Page 67 and 68: Corporate governance 65 During the
Page 69 and 70: Corporate governance 67 Performance
Page 71 and 72: Corporate governance 69 During the
Page 73 and 74: Corporate governance 71 There is a
Page 75 and 76: Report on remuneration 73 Variable
Page 77 and 78: Report on remuneration 75 Current m
Page 79 and 80: Report on remuneration 77 Individua
Page 81 and 82: Report on remuneration 79 Executive
Page 83 and 84: Report on remuneration 81 Opening m
Page 85 and 86: Report on remuneration 83 Mr Médor
Page 87 and 88: Report by the independent auditors
Page 89 and 90: Group balance sheet At 30 September
Page 91 and 92: Total recognised gains and losses Y
Page 93 and 94: Accounting policies 91 General •
Page 95 and 96: Notes to the financial statements 9
Page 111: Notes to the financial statements 1
Page 141 and 142: Group undertakings 139 Principal Gr
Page 143 and 144: Shareholder information 141 The tab
Page 145 and 146: Shareholder information 143 Taxatio
Page 147 and 148: Shareholder information 145 Payment
Page 149 and 150: Glossary of terms 147 Terms used in
Page 151 and 152: ©The BOC Group plc 2005. Designed
show all

BOC Report and accounts 2005 - Alle jaarverslagen

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?