Annual report 2018

44 | Galenica annual report 2018 Reporting in the consolidated financial statements, defined benefit plan principle The recording and assessment of benefit obligations in the consolidated financial statements of the Galenica Group is in accordance with International Financial Reporting Standards (IFRS). The pension funds are classed here as a defined benefit plan. In addition to recording short-term benefits to employees, benefit obligations for this pension plan following the end of employment are also calculated by actuaries. These actuarial calculations generally result in a lower coverage ratio (ratio of pension fund assets to liabili­ ties). However, these results have no impact on the benefits the pension funds pay. Further information on reporting and the current coverage ratio can be found in the notes to the consolidated financial statements (see page 111). One-off effects in 2018 From 1 January 2019, the new Galenica Pension Fund will be able to increase benefits for part-time workers and long- term employees without any additional costs thanks to lower insurance premiums. In international accounting pur­ suant to IAS 19, contribution pension plans in Switzerland must be presented as benefit plans, meaning that the new, uniform Galenica Pension Fund as of 1 January 2019 will create a one-off, negative effect of CHF –41.0 million at EBIT level and CHF –33.2 million at net profit level in the 2018 financial statements. This one-off effect under IAS 19 is solely of a technical nature and with no effect on cash. Works committee Representatives of the Galenica Ltd. Corporate Executive Committee and HR management met twice with the works committee, which represents all employees of the Galenica Group and which gathers all the staff committee presidents to discuss issues that went beyond matters addressed by staff committees in the individual Business sectors. In the year under review, their main focus was on the ongoing harmonisation of the various personnel and working time regulations as well as on the new pension scheme for all Galenica Group employees. The staff committees meet several times a year. Details of the new pension scheme solution were presented to mem­ bers at an information event organised specifically for them. Social responsibility Social commitment As a leading player in the Swiss healthcare market, Galenica is committed at all levels to the welfare of patients. The company is also committed to supporting various social projects and charitable organisations. “I care for you”. Since 2018, the Galenica Group has been the main partner of the “I care for you” crowdfunding plat­ form. Galenica can now contribute, through a focused com­ mitment, to ensuring that numerous different projects have a facility through which to raise funds. The Swiss-based foundation was founded in 2015 and is the first Swiss crowdfunding platform for purely social and humanitarian projects. The platform enables non-profit organisations and individuals to raise funds online for a specific project in a simple, inexpensive way. Donors can see exactly how their donations are used. Each project is checked carefully by the foundation in advance for reliability and integrity. The project initiators receive professional advice and support during implementation. In addition, the foundation requires evidence that successful projects have actually been imple­ mented. The Galenica Group also supported “I care for you” with its Christmas and New Year card for 2018. One Swiss franc per card was donated to the foundation, with all funds going towards a crowdfunding project. In addition to this main commitment, Galenica also selec­ tively supports other projects in the healthcare sector. Fur­ thermore, Galenica Group companies also support social projects. A few examples are listed below: Gewa. The Gewa foundation for workplace integration is a social organisation that aims to integrate people with particular mental challenges into the workplace. The Alloga SC Box had initially been assembled and repaired by Alloga employees – since 2012, this task has been taken over by the Gewa foundation. 2 × Christmas. In December 2018, Galenicare employees took part in the 2 × Christmas campaign of the Swiss Red Cross. They filled boxes with non-perishable foods and toiletries, which were then sorted and distributed to people in need and social institutions in Switzerland. Human Resources Galenica