2025 Universal Registration Document

General and financial elements

  • In Switzerland, plans for the Group’s employees and former employees (3,328 people at 31 December 2025, of which 2,921 are active)are “cash balance” pension plans that guarantee their members a minimum return on their contributions. They provide benefits in theevent of death or disability, along with a pension when members stop working. These plans are open to new members. Their averageduration is 13 years.
  • For German subsidiaries, there are several internal plans within the Group, including plans implemented as direct pension promises(Direktzusagen). These plans provide members with pensions or death and disability benefits. At 31 December 2025, 8,491 individualswere covered by the plans, including 5,243 retirees, 2,185 people working for Group subsidiaries and 1,063 people who were generallystill working but no longer working for the Group. Most of these plans were closed to new members at 31 December 2025. Their average duration is nine years.

Commitments relating to lump sum payments on retirement for manual construction workers in France, which are met by contributions to an outside multi-employer insurance fund (CNPO), are considered as being under defined contribution plans and are therefore recognised as an expense as and when contributions are payable.

The main retirement benefit obligations covered by provisions recognised in the balance sheet are calculated using the following assumptions:

The main retirement benefit obligations covered by provisions recognised in the balance sheet
  Eurozone United Kingdom Switzerland
Assumptions 31/12/2025 31/12/2024 31/12/2025 31/12/2024 31/12/2025 31/12/2024
Discount rate 3.65% 3.30%

5.75% - 5.85%

5.05% - 5.10%

 1.05% 0.95%
Inflation rate 2.00% 2.00% 2.45%(*) 3.05%(**)

2.35% - 2.55%(*) 3.15%(**)

 1.00% 1.10%
Rate of salary increases 2.00% - 4.40%

2.00% - 4.40%

1.50% - 3.05%

1.50% - 3.15%

 1.50% 1.60%
Rate of pension increases

1.50% - 2.00%

1.50% - 2.00%

2.31% - 3.55%

2.40 - 3.60%

 n/a n/a

(*) CPI.

(**) RPI.

Discount rates have been determined by geographical area on the basis of the yields on private sector bonds with a rating of AA and whose maturities correspond to the plans’ expected cash flow.

The other local actuarial assumptions (economic and demographic assumptions) are set on the basis of the specific features of each country involved. Plan assets are measured at their fair value at 31 December 2025. The book value at 31 December 2025 is used for assets invested with insurance companies.

On the basis of the actuarial assumptions referred to above, details of the retirement benefit obligations, provisions recognised in the balance sheet, and the retirement benefit expenses recognised in 2025 are provided below.

Result of actuarial valuations in the period
Breakdown by type of obligation
Breakdown by type of obligation
    31/12/2025 31/12/2024
(in € millions)   Lump sums paid on retirement in France Pensions, supplementary pensions and other Total Lump sums paid on retirement in France Pensions, supplementary pensions and other Total
Actuarial liability from retirement benefit obligations   681 2,280 2,961 690 2,380 3,071
Plan assets at fair value   20 2,050 2,070 26 2,080 2,106

Deficit (or surplus)

   662 230 892 665 300 965
     
Provision recognised under liabilities on the balance sheet I 662 472 1,134 665 520 1,185
Overfunded plans recognised under assets on the balance sheet II - 135 135 - 122 122

Asset ceiling effect (IFRIC 14)(*)

 III - 107 107 - 98 98
Total

I − II − III

 662 230 892 665 300 965

(*) Effect of asset ceiling rules and minimum funding requirements.

Breakdown by country
Breakdown by country
    31/12/2025
(in € millions)   France Germany United Kingdom Switzerland Other countries Total
Actuarial liability from retirement benefit obligations   850 301 839 732 240 2,961
Plan assets at fair value   116 9 885 831 229 2,070
Deficit (or surplus)   734 292 (46) (99) 11 892
   
Provision recognised under liabilities on the balance sheet I 750 292 45 9 38 1,134
Overfunded plans recognised under assets on the balance sheet II 16 0 91 5 23 135
Asset ceiling effect (IFRIC 14)(*) III 0 - - 103 4 107
Total

I − II − III

 734 292 (46) (99) 11 892

(*) Effect of asset ceiling rules and minimum funding requirements.