Notes to the Consolidated Financial Statements (21.8) Actuarial assumptions Actuarial assumptions are based on long-term economic factors in the respective countries. Each item of ‘other plans’ is a weighted average in relation to the relevant underlying component. The significant assumptions are as follows: in % 22002200 2019 Switzerland Other plans TToottaall Switzerland Other plans TToottaall Discount rate 0.25% 1.10% 00..4433%% 0.25% 1.49% 00..5511%% Future salary increase 1.50% 1.25% 11..4455%% 1.50% 1.30% 11..4466%% Future pension increase 0.00% 2.01% 00..4422%% 0.00% 2.11% 00..4444%% Life expectancy is reflected in the defined benefit obligations by using mortality tables of the country in which the plan is located. The generational tables BVG/LPP 2015 (2019: BVG/LPP 2015) have been used for Switzerland. In general, the present value of the defined benefit obligations is determined annually by independent actuaries using the projected unit credit method. Actuarial assumptions are required for this purpose. The discount rate, future salary increase and life expectancy were identified as significant actuarial assumptions. The following impacts on the defined benefit obligation are to be expected: • A 0.25% increase/decrease in the discount rate would lead to a decrease/increase of 4.49% in the defined benefit obligation. • A 0.25% increase/decrease in expected future salaries would lead to an increase/decrease of 0.56% in the defined benefit obligation. • A one-year increase/decrease in life expectancy would lead to an increase/decrease of 2.93% in the defined benefit obligation. The sensitivity analysis is based on realistically possible changes as of the end of the reporting period. Each change in a significant actuarial assumption was analyzed separately as part of the test. Interdependencies were not taken into account. (22) Bonds The bonds were issued by Hilti Corporation. Further details of the individual bonds are included in the key figures (see page 3). in CHF million 22002200 2019 Maturity < 1 year – – 1 to < 2 years – – 2 to < 3 years 100.0 – 3 to < 4 years 100.0 100.0 4 to < 5 years 149.9 100.0 >= 5 years 99.9 99.9 Total bonds 444499..88 229999..99 Further information Fair values 460.8 312.5 Average effective interest rates (in %) 0.6 0.8 The fair values of Swiss franc bonds totaling CHF 460.8 million (2019: CHF 312.5 million) are based on the quoted market prices and are within level 1 of the fair value hierarchy. 2020 Financial Report | 57