204

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 The amount included in the consolidated and separate statement of financial position arising from the entity’s obligation in respect of its defined benefit plans is as follows. Group & Company 31-Dec-16 31-Dec-15 ₦’million Present value of defined benefit obligations Fair value of plan assets Net liability arising from defined benefit obligation - - - ₦’million 4,966 (974) 3,992 • If the discount rate is 100 basis points higher (lower), the defined benefit obligation at at 31st December, 2015 would decrease by ₦651 million (increase by ₦792 million). • If the expected salary growth increases (decreases) by 1%, the defined benefit obligation as at 31st December, 2015 would increase by ₦817 million (decrease by ₦680 million). • If the the assumed mortality age is rated up (down) by one year, the defined benefit obligation as at 31st December, 2015 would increase by ₦39 million (decrease by ₦35 million). The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of 2015, which is the same as that applied in calculating the defined benefit obligation liability recognised in the statement of financial position. 29. Financial Instruments 29.1 Capital Management The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of net debt (borrowings as detailed in note 24 offset by cash and bank balances) and equity of the Group (comprising issued capital, reserves, retained earnings and non-controlling interests as detailed below. Group Company Net debt (Note 29.1.1) Equity 31-Dec-16 31-Dec-15 ₦’million 240,772 797,345 ₦’million 204,177 644,720 31-Dec-16 31-Dec-15 ₦’million 196,768 981,367 ₦’million 189,956 748,479 The Group’s Audit, Compliance and Risk management committee reviews the capital structure of the Group on a semi-annual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Group endeavours to maintain an optimum mix of net gearing ratio which provides benefits of trading on equity without exposing the Group to any undue long term liquidity risk. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions. To maintain the capital or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new and/ or bonus shares, or raise debts in favourable market conditions. 204 Annual Report 2016

205 Publizr Home