EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Operating assets and liabilities, equity

AT 31 DECEMBER 2017:

Provisions in the balance sheet

Obligations

Fund assets

(in millions of euros)

Provisions for post-employment benefits at 31/12/2017

31,214

(11,621)

19,593

Comprising: Pensions

24,266

(10,859)

13,407

Benefits in kind (electricity/gas)

4,758

-

4,758

Retirement gratuities

873

(747)

126

Other

1,317 1,487

(15)

1,302 1,487

Provisions for other long-term employee benefits at 31/12/2017 Comprising: Annuities following work-related accident and illness, and invalidity

-

1,250

- - -

1,250

Long service awards

208

208

Other

29

29

32,701

(11,621)

21,080

PROVISIONS FOR EMPLOYEE BENEFITS AT 31/12/2017

31.2.4

Breakdown of obligations by type of beneficiary

31/12/2018

31/12/2017

(in millions of euros) Current employees

16,009 13,192 29,201

18,577 14,124 32,701

Retirees

OBLIGATIONS

Fund assets 31.2.5 For France, fund assets, managed under an asset/liability model, amount to €11,165 million at 31 December 2018 (€11,621 million at 31 December 2017) and concern the coverage of retirement gratuities and the specific benefits of the special pension system. They consist of insurance contracts with the following risk profile:

73% in a hedging pocket consisting of bonds, designed to replicate variations in ■ the obligation caused by changes in interest rates; 27% in a growth asset pocket consisting of international equities. ■

Fund assets break down as follows:

31/12/2018

31/12/2017

(in millions of euros) FUND ASSETS

11,165 10,416

11,621 10,859

Assets funding special pension benefits Comprising (%) Listed equity instruments (shares) Listed debt instruments (bonds) Assets funding retirement gratuities Comprising (%) Listed equity instruments (shares)

27% 31% 73% 69%

734

747

27% 32% 73% 68%

Listed debt instruments (bonds)

Other fund assets

15

15

At 31 December 2018, the equities held as part of fund assets are distributed as follows: approximately 58% of the total are shares in North American companies; ■ approximately 18% of the total are shares in European companies; ■ approximately 24% of the total are shares in companies in the Asia-Pacific zone ■ and emerging countries. This distribution is relatively stable compared to the distribution at 31 December 2017.

At 31 December 2018, the bonds held as part of fund assets are distributed as follows: approximately 93% of the total are AAA and AA-rated bonds; ■ approximately 7% of the total are bonds with A, BBB and other ratings. ■ Around 89% of bonds are sovereign bonds issued by Euro zone countries, and the balance mainly consists of bonds issued by financial and non-financial firms. This distribution is relatively stable compared to the distribution at 31 December 2017. The performance of pension fund assets in France is -0.4% in 2018.

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EDF I Reference Document 2018