Page 93 - EVRY Annual Report 2012

Annual Accounts Group 93
Pension assets are invested in bonds issued by the Norwegian government, Norwegian municipalities, financial in-
stitutions and corporations. Bonds held in foreign currencies are to a large extent currency hedged. Pension assets
are invested both in Norwegian and foreign equity securities. The currency hedging policy for foreign equity securi-
ties is evaluated on an individual investment basis. Pension assets are invested in accordance with the guidelines
applying to life insurance companies.
The group expects to pay approximately NOK 53million in pension premiums to the group’s defined benefit plans in 2013.
Uncertainty over estimates
Calculations of pension cost for the year and the book value of pension liability are based on the assumptions above.
Considerable uncertainty attaches to the amounts calculated, which principally vary in pace with the level of interest
rates in Norway.
Sensitivity analysis
The table below shows the estimated percentage change in pension liability and pension cost for the defined benefit
pension schemes in Norway in the event of a one percentage point change in the most important parameters.
PBO Pension costs
Discount rate -1 % 17% 18%
Discount rate +1 % -13% -14%
Future salary inflation -1 % -11% -14%
Future salary inflation +1 % 12% 16%
Growth in the basic state pension (G) -1 % 6% 5%
Growth in the basic state pension (G) +1 % -5% -7%
Annual growth in pensions - 1 % -2% -1%
Annual growth in pensions +1 % 9% 8%
Employee share based schemes
The group carried out a share purchase program for all employees of wholly-owned subsidiaries in the Nordic coun-
tries in 2012. All employees of these companies were offered the opportunity to purchase shares with a value of NOK
7,500 at a cost to them of NOK 6,000. A total of 1,090 employees participated in the program, and purchased 868,730
shares at a price of NOK 9.40 per share, equivalent to the closing price on the last day of the subscription period.
The group established a share-based long-term remuneration program in 2011 for the members of executive
management and certain other key employees. This program continued in 2012. The program takes the form of an
annual remuneration program, which is subject to approval by the Board of Directors each year based on recom-
mendations from the Compensation Committee. The employees who are included in the program receive a fixed
payment depending on their position in the organisation. The net amount received after income tax must be used
to buy shares in EVRY ASA. The members of the program are required to hold the shares purchased for a minimum
period of three years, and a member must continue to be an employee throughout this period if he or she is to be
entitled to retain the shares after the expiry of the remuneration program. The remuneration program applied to 67
employees in 2012, including the members of executive management.
Cost of goods sold and other operating costs
Cost of goods sold comprise:
NOK million 2012 2011 2010
Purchase and lease of software 1 228.9 1 260.4 721.2
Purchase and lease of hardware 431.8 411.6 342.4
Consulting costs 871.3 847.7 420.2
Network capacity 343.0 342.7 229.9
Use of goods for resale 645.2 583.1 402.8
Other material costs 512.7 733.2 573.2
Total cost of goods sold 4 032.8 4 178.7 2 689.6
Note 06
Note 07