EDF / 2018 Reference document

FINANCIAL STATEMENTS Balance sheet

PROVISIONS FOR EMPLOYEE BENEFITS NOTE 30

Changes in provisions for employee benefits were as follows:

Increases

Decreases

31/12/2017

Operating (1)

Financial

Operating (2)

Financial (3)

31/12/2018

(in millions of euros)

Provisions for post-employment benefits

10,056

796

556

(837) (117) (954)

(267)

10,304

Provisions for long-term benefits

999

36

18

-

936

11,055

832

574

(267)

11,240

PROVISIONS FOR EMPLOYEE BENEFITS

Including a past service cost of €529 million, amortisation of actuarial losses amounting to €293 million, and unvested benefits of €10 million. (1) Including €(885) million for employers’ contributions and €(68) million for actuarial gains. (2) For the expected return on fund assets. (3)

DETAILS OF CHANGES IN PROVISIONS:

Provision in the balance sheet

Unrecognised actuarial gains and losses

Unrecognised past service cost

Obligations net of fund assets

Obligations Fund assets

(in millions of euros)

BALANCE AT 31/12/2017

30,108

(11,366)

18,742

(49)

(7,638)

11,055

Net expense for 2018

1,104

(268)

836

10

225

1,071

Unrecognised actuarial gains and losses

(3,013)

305 (30) 446

(2,708)

- - -

2,708

-

6.

Contributions to funds

-

(30)

- -

(30)

Benefits paid

(1,302) 26,897

(856)

(856)

(10,913)

15,984

(39)

(4,705)

11,240

BALANCE AT 31/12/2018

Actuarial gains and losses on obligations amount to €3,013 million for 2018, reflecting the change in the discount rate (€2,036 million), the update of the mortality table (€408 million), the update of the wage increase rates (€356 million), and experience adjustments of €(13) million.

POST-EMPLOYMENT AND LONG-TERM EMPLOYEE BENEFIT EXPENSES:

31/12/2018

31/12/2017

(in millions of euros) Current service cost

529 574

530 584

Interest expenses (discount effect) Expected return on fund assets

(267)

(266)

Amortisation of unrecognised actuarial gains and losses - post-employment benefits

241 (16)

283

Change in actuarial gains and losses - long-term benefits

42

Effect of plan curtailment or settlement Past service cost - vested benefits Past service cost - unvested benefits

- -

- -

10

10

1,071

1,184

NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS

including: Operating expenses (1)

764 307

865 318

Financial expenses

In 2018, this amount principally corresponds to operating increases of €832 million net of reversals for actuarial gains and losses (€68) million). (1)

475

EDF I Reference Document 2018