Provisions are recognised for obligations enforceable by law or factual obligations of an uncertain amount or timing as a result of past events. If the effect of an obligation is material, the provision is calculated by discounting expected future cash flows at a current discount rate, taking into account any specific risks inherent in the obligation. The present value of employee-related provisions is calculated using the project unit credit method. Actuarial results are recognised directly in the result.
Any expenditure expected within one year after the balance sheet date is recognised as a separate item under current liabilities.
Provisions at year-end 2023 can be specified as follows:
|
€ Million |
Service-related benefits |
Other employee benefits |
Other |
Total 2023 |
|
Obligations at beginning of year |
12 |
4 |
9 |
25 |
|
Additions |
2 |
0 |
1 |
3 |
|
Utilisation |
-1 |
0 |
-1 |
-2 |
|
Released |
0 |
-1 |
-8 |
-9 |
|
Total |
13 |
3 |
1 |
17 |
|
Less: current portion |
2 |
0 |
1 |
3 |
|
Total non-current portion |
11 |
3 |
0 |
14 |
The current portion of provisions amounted to € 3 million (2022: € 4 million) and has been recognised separately under the current liabilities.
The comparative overview for 2022:
|
€ Million |
Service-related benefits |
Other employee benefits |
Other |
Total 2022 |
|
Obligations at beginning of year |
16 |
4 |
16 |
36 |
|
Additions |
2 |
0 |
4 |
6 |
|
Utilisation |
-2 |
0 |
-2 |
-4 |
|
Released |
-4 |
0 |
-9 |
-13 |
|
Total |
12 |
4 |
9 |
25 |
|
Less: current portion |
1 |
0 |
3 |
4 |
|
Total non-current portion |
11 |
4 |
6 |
21 |
Long-service benefits
In accordance with the provisions of the collective labour agreement (CLA), Enexis grants long-service benefits to employees. As of the commencement of employment, a provision is formed for the long-service benefits based on the past number of years of employment, anticipated price and salary increases, as well as the probability of mortality, disability and dismissal.
The most important assumptions on which the calculations of the long-service benefits are based are the following:
|
2023 |
2022 |
|
|
Discount rates |
0%-3,81% |
0%-3,13% |
|
Estimated future annual CLA wage increases |
1.5% |
1.5% |
|
Company-specific annual periodic indexation |
1.0% |
1.0% |
|
Estimate future resignation probability |
4.0% |
4.0% |
|
Markup social security expenses |
8.3% |
8.2% |
Provision for other employee-related expenses
This provision covers various employee-related expenses, including expenses related to the voluntary termination of employment and severance payments, healthcare costs for former employees and retention and reorganisation costs.
The reorganisation provisions are calculated on an individual basis taking into account the employee's gross salary, length of employment, expected duration of redundancy and an addition of 35% for employer's contributions. An estimate has been made for part of the provisions regarding the future termination of employment of redundant employees.
Other provisions
At year-end 2023, other provisions consisted mainly of provisions for claims and disputes. In order not to damage Enexis's legal position, no further details are provided regarding the provisions for claims and disputes.